Electric van sales drop for fifth consecutive month in UK.

Electric van demand took a significant hit last month, despite an overall growth in the light commercial vehicle sector. The latest data from the Society of Motor Manufacturers and Traders (SMMT) revealed a 30.3% year-on-year drop in battery electric van (BEV) registrations in August, with only 908 vans registered. This marks the third consecutive month of decline for BEVs this year and the fifth overall.

In August, BEVs made up just 5.5% of all new vans, a decrease from 7.9% in August 2023. This decline raises concerns for automakers who are aiming to meet ZEV mandate targets. Year-to-date, BEV volumes have fallen by 9.5% and market share has shrunk to 5.1% – only half of the required 10% ZEV mandate target. Despite the introduction of more zero emission vehicles by manufacturers, the market share for BEVs remains low.

The industry is facing mounting concerns about a potential return to a ban on internal combustion engine (ICE) vans by 2030. To address this, there is a call to boost operator confidence by providing long-term certainty regarding the Plug-in Van Grant, maintaining fiscal incentives, and speeding up the deployment of van-suitable charging infrastructure.

Mike Hawes, SMMT chief executive, expressed his worry over the significant drop in demand for electric vans, especially with mandatory sales targets in place. He emphasized the need to stimulate operator confidence through various measures to support the UK in meeting its net zero goals while fostering economic growth.

Sue Robinson, chief executive of the National Franchised Dealers Association (NFDA), highlighted the ongoing buyer uncertainty surrounding heavier 4.25-tonne electric vans, which has hindered the switch to EVs. Concerns about tachographs, MOT testing requirements, and governmental promises to address these barriers have led to a decline in registrations for 3.5-4.25-tonne electric vans.

Robinson stressed the importance of resolving these issues and making on-street charging more accessible for tradespeople and self-employed contractors to encourage the adoption of battery electric vehicles in the LCV sector.

Matthew Davock, director of Manheim Commercial Vehicles, pointed out the significance of the ZEV mandate in shaping the industry for the rest of the year. The push to increase EV volume is crucial, but there are uncertainties about meeting the targets. The gap between legislative goals and consumer preferences is widening, underscoring the need for government engagement, incentives, and a review of the mandate to support the automotive sector.