- Van market sees 16 months of growth, yet -42.4% dip in April battery electric van registrations lowers market share to 4.9%.
- Nissan and Maxus exceed 10% ZEV target for electric van sales; hurdles remain for manufacturers like Mercedes and Ford.
- Government support is critical for accelerating electric van adoption amid slower growth than traditional vans.
Van market soars with months of uninterrupted growth, but electric vans are falling behind
The van market has achieved a significant milestone by sustaining sixteen consecutive months of growth in April 2024.
However, there is an urgent need for increased government support to ensure that electric vans align with this upward trend, as their growth rate has not matched that of traditional vans. This news comes not long after the Zero Emission Plan calls for urgent action to electrify the UK’s fleets in order to reach our 2030 targets. We need intervention.
Current market trends
- In April, Light Commercial Vehicle (LCV) dealers registered 23,889 new vans and light commercials, reflecting a 5.4% increase.
- Year-to-date figures for 2024 show a total of 118,701 new LCVs on the roads, indicating an 8.0% increase.
- Decrease in the number of battery electric commercials registered by -42.4% to 861 units.
- Volume for electric vans declined to 5,800 units from 5,987 units (-3.1% change year to date).
Government intervention is crucial for electric van adoption
Despite the overall market growth, the significant decrease in the registration of battery electric commercials by -42.4% in April has led to a drop in the market share of electric vans to 4.9%, down from 5.4% last year. This figure falls far below the 10% target outlined in the ZEV mandate.
Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA), stresses the vital role of government intervention:
“Van buyers need confidence from the Government to make the switch to new EV commercials through measures such as improving charging infrastructure. With the ZEV mandate stipulating that 10% of vans sold by manufacturers this year are required to be zero-emissions or face penalties, it is crucial that incentives are introduced by the Government to drive up demand and meet these targets.”
Encouraging signs amidst challenges in the electric van space
Despite the challenges, there have been notable successes in the electric van sector, with manufacturers like Nissan and Maxus exceeding the 10% threshold for electric van sales. Additionally, Stellantis, Renault, VW, and Toyota are all making considerable strides towards meeting the target. Notably, DSFK, a dedicated electric van maker, has made its mark by entering the top 10 electrified van manufacturers.
However, there are challenges for certain manufacturers, like Mercedes and Ford, the latter of which sells more vans than the next three manufacturers combined, emphasising the need for concerted efforts to drive electric van adoption.
In conclusion, while the new van market continues its growth trajectory, a stronger push from the government is necessary to catalyse the shift towards electric vans. This will help pave the way for a greener and more sustainable future in the commercial vehicle industry. You can help support the Zero Emission Van Plan with the BVRLA here.
