Electric Van Demand Drops for First Time in Over a Year

Greetings, Net Zero News Community,

As we navigate through the ever-evolving landscape of electric vehicles, recent data from the Society of Motor Manufacturers and Traders (SMMT) has unveiled some concerning trends in the UK’s light commercial vehicle (LCV) market. In October, registrations of new LCVs plummeted by a staggering 15.1%, a decline that underscores the pressing need for renewed focus on fleet renewals and the transition to greener alternatives.

Despite the overall downturn, the demand for battery electric vans (BEVs) only dipped by 5.8%. This figure, although disappointing, is a testament to the resilience of electric vehicle uptake amidst broader market challenges. In total, 22,896 vans, pickups, and 4x4s were registered last month, reflecting a trend that has been building over the past few months.

The SMMT reported that this decline follows a modest 2.1% downturn in September, even as the introduction of the new ‘75’ number plate initially boosted electric van registrations. However, with business confidence wavering and economic pressures mounting, the latest figures reveal a comprehensive decline across all van categories.

Among the largest LCVs, registrations fell by 7.0%, with 16,443 units sold, still accounting for a substantial 71.8% of the overall market. Meanwhile, the medium- and small-sized van sectors experienced sharper declines, with registrations plummeting by 41.2% and 23.4%, totalling 3,347 and 523 units, respectively. On a brighter note, the smaller-volume 4×4 segment surged, with registrations soaring by 88.0% to 440 units.

New pickups also saw a significant decline, with sales down by 20.2% to 2,143 units. This decrease is largely attributed to new fiscal measures that classify double cabs as cars for Benefit-in-Kind and capital allowance purposes, impacting their attractiveness in the market.

Interestingly, the market for battery electric vans faced its first setback in over a year, dropping by 5.8% to a total of 2,132 units. Despite this decline, electric vehicles managed to increase their market share to 9.2%, highlighting a shift towards greener options even in a contracting market. In fact, over the past ten months, BEV volumes have surged by 47.4% to 24,250 units, showcasing a remarkable growth trajectory amidst an overall market slump.

However, it’s crucial to note that BEVs still accounted for only 9.1% of all new registrations in the first ten months of 2025, falling short of the mandated 16% share that is set to rise to 24% by 2026. This discrepancy underscores the urgent need for strategic initiatives and supportive policies to catalyse the transition towards zero-emission vehicles.

Looking ahead, the latest market outlook indicates that the new LCV market is expected to reach 321,000 units in 2025, representing a decline of 8.7% from the previous year. However, a bounce-back is anticipated in 2026, with uptake projected to grow by 4.2% to 334,600 units, and a further 0.6% in 2027. The demand for zero-emission LCVs weighing up to 3.5 tonnes is forecasted to grow by an impressive 47% this year, achieving a 9.7% market share, and rising to 14% in 2026.

In light of these developments, the SMMT has highlighted several positive announcements related to electric vans. These include the Government’s decision to allow the continued sale of new, non-zero emission, and plug-in hybrid vans until 2035, the extension of the Plug-in Van Grant, and the introduction of a new Depot Charging Scheme. Furthermore, last month’s proposal to reform planning rules for private charger installations is a significant step forward. The SMMT has called for these changes to be implemented urgently to ensure that mandated goals are achievable.

Moreover, the industry body has stressed that planning reforms must extend further to support depot-based operators who require grid connections before transitioning their fleets to electric. Many of these operators face lengthy wait times of up to 15 years for grid connections, which can stifle their ability to invest in greener technologies. A fast-tracked approval process, similar to that used for data centres and wind farms, could provide the necessary impetus for businesses to confidently invest in a timely transition to electric fleets.

Mike Hawes, the SMMT Chief Executive, commented on the situation, stating, “While October’s decline is unsurprising amid the intense economic pressure facing businesses, returning the van market to growth is essential – especially to underpin new investment in zero-emission models, which until now had bucked wider trends.”

He further emphasised the importance of pulling every lever available to get the market back on track and to ensure that the transition occurs at the mandated levels. “Accelerating infrastructure rollout and grid connections, in particular, will help ensure government targets are not just an aspiration but are actually deliverable for manufacturers and operators alike,” Hawes added.

In response to these market trends, electric van manufacturer Flexis—a joint venture between Renault Group, Volvo Group, and CMA CGM—has also weighed in on the figures. The company highlighted a remarkable 47.9% year-on-year growth in new electric light commercial vehicles (eLCVs). Matt Hawkins, Head of Flexis UK&I, noted, “As e-commerce continues to grow, the air quality, cost-saving, and operational efficiency benefits of electric vans are becoming increasingly valued by logistics fleets—particularly for those entering their busiest period of the year.”

Hawkins further stated, “With the right infrastructure, supportive policies, and continued innovation, businesses are realising that the transition to electric vans is not only achievable but a real business advantage.” This sentiment encapsulates the growing recognition of the benefits that electric vehicles bring to the logistics sector, especially as sustainability becomes a core business imperative.

As we forge ahead, it is clear that the road to a greener future is fraught with challenges, but the momentum is shifting. With continued investment, supportive policies, and a concerted effort to enhance infrastructure, we can envision a landscape where electric vans are not just an option but a standard in the logistics and transportation sectors.

In conclusion, while recent figures indicate a downturn in the LCV market, the resilience of electric vehicles shines through. The growth in battery electric van registrations, despite broader market contractions, signals a growing acceptance and commitment to zero-emission technologies. As industry stakeholders come together to address the challenges ahead, the vision of a sustainable, net-zero future becomes increasingly attainable.

Let us remain committed to championing the transition towards a greener, cleaner, and more sustainable transportation system. Together, we can ensure that the ambitions for net-zero emissions are not just dreams but realities.