One of the main reasons for the slower uptake of EVs is the initial financial commitment for the consumer and the delay in introducing new electric vehicle models for LCVs. LCV buyers are driven by costs and viability, particularly business owners, with current Government grants not yet compensating the price variation between fossil fuel and EVs to support the transition
Demand from businesses for light commercial vehicles remains high but registration figures for April were down year-on-year due to component shortages restricting supply according to the latest SMMT LCV figures.
New light commercial vehicle (LCV) registrations decreased by 29.1% in April to 21,597 units. Year to date figures reveal a 24.9% fall, from 127,796 units to 95,941.
Demand for battery electric vehicles (BEV) remains strong, with registrations increasing by 52.7% in April and by 65.8% for the first four months of this year. In total, 5,216 electric vans have been registered this year, representing only 5.4% of the LCV market. Similarly, petrol and hybrid have increased registrations by 15.5% year on year, but still only represents 2% of the total market.
All sectors of light commercial vehicles up to 3.5 tonnes showed declines in registrations, from 30,440 units to 21,597, a 29.1% decrease. The 2.5 – 3.5t sector now accounts for 70.5% of all LCVs registered, with 67,664 units going on the road this year.
Ford was the market leader in April with a 38.54% share. It was followed by Vauxhall at 10.89% and then Citroen at 9.76%.
Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA), said: “One of the main reasons for the slower uptake of EVs is the initial financial commitment for the consumer and the delay in introducing new electric vehicle models for LCVs.
“LCV buyers are driven by costs and viability, particularly business owners, with current Government grants not yet compensating the price variation between fossil fuel and EVs to support the transition.
“Demand for light commercial continues to be strong, and dealers are optimistic. However, there remains to be caution with supply constraints impacting the customer’s journey.”
In light of ongoing supply chain challenges, SMMT has revised its outlook for new van registrations downwards from 363,000 units to 328,000 in 2022.2 As a result, this year’s market is anticipated to fall 7.7% on 2021, with BEVs expected to account for 6.3% of registrations.
Mike Hawes, SMMT Chief Executive, said: “Despite the global supply pressures on the UK’s light commercial vehicle sector, manufacturers are prioritising the most popular models, while investing in electric options where demand is slowly but steadily growing. Constrained supply, however, does mean that 2022’s new van market is expected to be down on last year’s bumper uptake.
“Even so, while market conditions remain challenging for van operators across the UK, now is the time for those looking to renew their fleets to put their orders in, as interest rates remain historically low and an increasing range of fuel efficient and electrified models are now available.
Andy Hill, Strategic LCV Fleet Engineering Consultant at Lex Autolease, said: “It’s encouraging to see battery electric vans continue to attract interest as businesses accelerate their electrification plans. While transitioning to an electric fleet remains vital for a sustainable future, commercial vehicles still need to be fit for purpose and legally compliant – making vehicle selection a key priority. That’s why we need to see policymakers and manufacturers continue to work together to help build a zero-emission van market that has both a widespread choice of vehicles and the necessary charging infrastructure.”
ATS Euromaster said that with lack of vehicle availability impacting commercial vehicle replacement cycles, SMR costs are rising in line with increased maintenance requirements.
The tyre service and maintenance provider said commercial fleets need to budget for higher SMR with vans running beyond normal defleet cycles. It said the average spend pre-pandemic was £118 whereas in the first quarter of 2022 it has risen to £138 on average – an increase of 17%.
Mark Holland, operations director at ATS Euromaster, said: “The SMR rise is down to the additional work that is required rather than actual cost, although that may change again as inflationary pressures begin to take hold.
“We’re seeing vans being run for longer than average lifecycles and double-shifted so the mileage and wear is increasing substantially. Meanwhile many of the vans we see at centre are from self-employed last mile delivery drivers who are driving up and down kerbs and so on, all day every day. In turn this means greater costs with wheel alignment, shock and suspension work and damaged tyres on a more regular cycle”
In line with extended lifecycles, ATS Euromaster says it has seen an uplift in the demand for consumables such as:
- Brakes, disks, pads and fluid
- Wheel Alignment
- Puncture repair, if possible
- Shock and suspension maintenance
Holland added that the other impact from longer lifecycle running was the demand for emergency repairs with downtime adding to the rise in SMR costs.
“We’re seeing an increase for emergency and same day service. And that’s simply because fleets have not kept their vehicles in tip top condition and preventative maintenance has disappeared. Drivers think they can just drop their van into our service centres for emergency attention. Whilst I would love that we could service every request ‘there and then’, it is not simply possible 100% of the time. At the moment we’re seeing an increase in drive ins as well as forward maintenance bookings via a variety of channels such as the website or third party partners.
“So I’d urge all fleets managers and drivers to think ahead to ensure their vans receive proper SMR attention before it becomes a critical failure leading to that worst scenario of all – vehicle downtime and cost.”
