New electric van demand declines for third month this year

Deliveries of battery electric vans fell for a third month this year, down 16.8% on June last year, according to new figures from the Society of Motor Manufacturers and Traders (SMMT).

Some 1,476 fully electric vans were registered in the month, meaning BEVs account for just 4.7% of all new light van registrations compared with 5.2% for the same period last year.

With manufacturers mandated to ensure zero emission vehicles comprise a minimum of 10% of their new van registrations this year, market share heading in the opposite direction is a cause for concern, says the SMMT.

The UK new light commercial vehicle (LCV) market declined by 4.5% overall to 33,066 units in June, ending a record-equalling 17-month growth run.

Despite the fall, the market has remained robust in the first half of the year – up by 4.5% with some 177,620 new vans, pickups and 4x4s registered in 2024, the best performance since 2021.

The scale of June’s decline is, in part, artificially inflated compared with 2023 – which saw the best June performance for four years as the industry met pent-up demand following Covid.

Mike Hawes, SMMT chief executive, said: “The best first half of a year since 2021 is great news for a market so intrinsic to economic growth, but this optimism will only continue if action is taken to re-energise zero emission van demand.

“A new Government provides an opportunity to bolster the market with a strategy to grow the UK’s van-specific charging network at pace and maintain essential fiscal incentives to keep this vital market on track, without which our net zero ambitions will be at risk.”

Demand varied across segments, with registrations of vans weighing more than 2.0 to 2.5 tonnes up by 14.0% to 7,169 units and those weighing less than or equal to 2.0 tonnes up 58.7% to 806.

Vehicles weighing above 2.5 tonnes up to 3.5 tonnes, however, which account for two thirds of the market, fell by 8.3% to 21,677 units.

Pick-up and 4x4 registrations also declined in the month, by 18.1% and 20.3% respectively.

Sue Robinson, chief executive of the National Franchised Dealers Association (NFDA), which represents franchised car and commercial vehicle retailers in the UK, said that, despite this contraction, year-to-date registrations for the first half of the year look healthy at 4.5% growth overall.

“The only LCV volume sectors in June to show growth were the mid-size vans 2.0-2.5 tonnes, which saw growth of 14%,” she continued.

“Buyers, both retail and fleet, have shown decreased interest in electric light commercial vehicles, with year-to-date market share down to 4.7% from 5.2% at the same point this time last year.

“This is a concern particularly with the ZEV mandate requiring at least 10% of registrations to be electric. The new government needs to address the vast price difference for electric LCVs that makes them nonviable for businesses and create a better charging infrastructure to support the bigger vehicles dimensions.”