Demand for electric vans grew for the fifth consecutive month in February by over 55%, with market share rising to 9.7% – up nearly 5% on last year but still lagging behind the 16% target required under the ZEV mandate.
According to the latest figures published today by the Society of Motor Manufacturers and Traders (SMMT) demand for battery electric vans weighing up to 4.25 tonnes rose by 55.1% to 1,413 units.
SMMT welcomed the increase in uptake and the government’s recent decision to continue the Plug-in Van Grant for another year but said more needed to be done.
“Mandating faster chargepoint rollout – including van-specific charging infrastructure – will be crucial, however, to bolstering confidence, whilst reintroducing discounted VED on ZEVs is also necessary to help raise demand to levels required under market regulation,” the society warned.
“With the industry charged to deliver a 16% zero emission new van market this year, urgent action is needed to encourage operators to switch, along with workable regulation that delivers growth and decarbonisation.
“The government’s review of the Zero Emission Vehicle Mandate is essential and must deliver measures and flexibilities that tackle lacklustre demand and encourage faster fleet renewal,” SMMT added
The research also shows that overall uptake for new light commercial vehicles (LCVs) fell by 19.3% in February to 14,476 units.
The third consecutive monthly decline led to the month’s lowest outturn since 2020, with February traditionally a low volume month as many operators postpone procurement until the arrival of the new March number plate.
SMMT pointed to weak business confidence ahead of upcoming tax changes, creating a fall in demand which it said impacted all but one segment, with registrations of smaller vans weighing under 2.0 tonnes showing the only increase, up 55.3% to 427 units – representing 2.9% of the market.
Volumes of medium vans were down by 33.0% to 2,119 units, while larger vans, weighing greater than 2.5 to 3.5 tonnes, dropped by 19.0% to 9,962 units.
The smaller segment market – 4x4s and pick-ups – also recorded declines, down 45.7% and 4.8% respectively.
The SMMT research also revealed that the top selling vans for the month were the Ford Transit Custom with 2,361 sales, followed by the Vauxhall Vivaro, at 1331 sales, and in third place the Ford Transit, with 1154 sold in the month.
Mike Hawes, SMMT chief executive, said: “Against an increasingly difficult economic backdrop, van manufacturers have shown resilience, but the decline was perhaps inevitable after two years of strong performance.
“Even in a contracting market, however, zero emission uptake is positive but still struggles to match the ambition of regulation.
“While the ongoing Plug-in Van Grant provides a lifeline, we still need support to bolster operator confidence, boost demand and deliver decarbonisation.
“Industry has committed billions to this vital transition and the mandate review must deliver workable measures that enable that commitment to deliver our shared ambition.”
