Demand for new, fully electric vans rose for the first time in five months in October, up 61.8% to 2,263 units, according to new figures published by the Society of Motor Manufacturers and Traders (SMMT).

It means new registrations of zero-emission vans represented 8.4% of the whole new light commercial vehicle (LCV) market in October. 

Over the course of the year, however, the uptake of fully electric vans up to 3.5 tonnes has fallen, down by 7.1% from 11,414 to 10,602 units, when compared to the same period last year. 

Sales of heavier electric vans, between 3.5t and 4.25t, have also declined, with 566 units registered year-to-date, compared to 923 units over the same period in 2023 – a 38.7% reduction. 

Fully electric vans currently account for a 5.6% market share – significantly below the 10% required by year end in the zero-emission vehicle (ZEV) mandate.   

The decline is despite significant manufacturer investment to grow Britain’s electric van choice to more than 30 models. 

The extension of the Plug-in Van Grant into the next financial year is welcome and necessary, says the SMMT, but further measures are critically needed to give more fleet operators confidence that going electric is commercially viable. 

In particular, the lack of charge point infrastructure suited to the specific needs of vans presents a major barrier for fleet operators considering the switch and must be addressed quickly. 

Overall LCV registrations, including internal engine combustion (ICE) vans, grew by 2.4% in October, with 26,974 new vans, pick-ups and 4x4s registered.

The growth was driven by demand for small and medium vans, up 55.9% and 49.6% to 683 and 5,688 units respectively. 

Uptake of large vans, meanwhile, fell by 2.7% to 17,683 units, though these vehicles still represent the vast majority (65.6%) of the market. 

Demand for new pick-ups and 4x4s also declined, by 18.9% and 62.0% to 2,686 and 234 units respectively, after strong growth a year ago.

Future demand for new pick-ups, however, is now at serious risk following last week’s Budget announcement to tax double cabs as cars for benefit in kind (BIK) and capital allowances purposes beyond April 2025. 

The change is set to heap further costs on vital industries such as farming, construction, utilities, the self-employed and other businesses for whom these vehicles are an everyday workhorse. 

The SMMT is urging Government to reconsider this move, therefore, and reflect February’s decision by HMRC to avoid harming these sectors with knock-on effects for the wider UK economy.

Mike Hawes, SMMT chief executive, said: “The continued growth in demand for new vans is encouraging given this sector is a barometer of the health of Britain’s businesses. 

“Industry has invested huge sums delivering cutting-edge technology, including zero emission vehicles, but low demand raises serious doubt over the ability of the UK to achieve its ambitious green targets. 

“There must be an urgent review of the market, regulation and support in place, else the cost will soon be felt in reduced UK investment, economic growth, jobs and decarbonisation.”