Market share expectations for new electric vans cut

The market share for new electric vans has fallen year-on-year, according to new figures from the Society of Motor Manufacturers and Traders (SMMT).

Despite demand for new battery electric vans soaring 94.6% to 1,489 units last month, compared to July 2022, and having increased 16.1% year-to-date (10,292 units versus 8,865), market share has decreased from 5.4% to 5.2%.

As a result, the anticipated BEV market share for 2023 has been reduced from 7.4% to 7.1% by the SMMT.

However, it says that BEVs are still expected to make-up 11.2% of all new van registrations next year.

Sue Robinson, chief executive of the National Franchised Dealers Association (NFDA), which represents franchised car and commercial vehicle retailers in the UK, said: “Despite the promising uplift in LCV EV demand for July, it remains disappointing that EV light commercials is trailing behind year-to-date figures from last year.

“Government needs to seriously look at what is holding back EV-LCV adoption and incentivise more on both vehicle acquisition and infrastructure fronts.”

Overall, Britain’s light commercial vehicle (LCV) market grows 44.2% in July, the seventh consecutive month of growth, with 26,990 units registered.

In what was the best July since 2020, registrations were also up 4.4% compared with pre-pandemic 2019 volumes, a result of rising demand for new vans, pickups and 4x4s and the easing of supply chain issues constraining production.

The largest volume growth was recorded for medium-sized vans weighing greater than 2.0 to 2.5 tonnes, which more than trebled, up 227.4% in the month.

Registrations of the largest LCVs, weighing greater than 2.5 to 3.5 tonnes, increased by 29.3% to 19,111 units and accounted for 70.8% of the market registered in the month.

Deliveries of 4x4s and pickups also saw growth, up 159.3% and 48.3% respectively, while registrations of vans weighing up to and including 2.0 tonnes were the only segment to decline, falling by 40.9% to 427 units.

Mike Hawes, chief executive of automotive trade body the SMMT, said: “Following a solid first half, van sales have enjoyed an extremely positive month, beating even pre-pandemic levels.

“The challenge now is to deliver even greater EV uptake, which requires urgent action to reduce soaring energy costs and increase the provision of dedicated van charging infrastructure to bolster operator confidence and meet the unique needs of this sector.

“These are vital hurdles to overcome, more so given next year will see a ZEV mandate with minimum sales targets for every brand.”