Sliding EV sales dent positive van market

Manufacturers urging Government to stimulate electric market.

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Britain’s new light commercial vehicle (LCV) market grew by 8.3% in September, fuelled by the launch of the 74 registration plate and producing the largest January to September volume since the last pre-Covid year of 2019.

However the positivity was not reflected in registrations of battery-electric vans (EVs), which at 3020 units represented a slight fall of 0.5% – a fourth successive month of sliding EV sales and the sixth in 2024. In total 14,188 new BEVs have been registered since the start of January, 7.7% below the same period last year.– the vehicles now represent 5.3% of all new LCVs registered so far in 2024,  just over half the 10% required by the UK’s zero emission vehicle mandate. Reacting to the results the Society of Motor Manufacturers & Traders (SMMT), that produced the registration figures, sated that decarbonisation will only be possible if fleet operators are confident that the switch is commercially viable. However global economic challenges in recent years have resulted in BEVs remaining stubbornly more expensive to source, produce and, despite compelling offers, more expensive to buy. The lack of chargepoint infrastructure, particularly suited to the specific needs of vans, also presents a major barrier for fleet operators considering the switch. With the pressures on EV sales running both across the car and LCV markets the SMMT and 11 major vehicle manufacturers have written to the Chancellor ahead of the Budget at the end of October, calling for measures to and help speed up the pace of the consumer and business EV transition. 241004 SMMTvan03 The measures demanded include maintaining and extending, beyond 2025, the current Plug-in Van Grant; equalising VAT on public charging to match the 5% home charging rate and mandating infrastructure targets to support those who cannot charge at home and with provisions for the additional size and power requirements of zero-emission vans.

Overall 48,455 new vans, 4x4s and pickups were registered to produce the best monthly performance of 2024 bar March. In total 267,339 new LCVs have joined UK roads this year, up 3.6% on 2023.

Growing demand for the smallest vans continued, rising by 34.1% to 1,180 registrations, while deliveries of new medium sized vans increased by 34.8% to 9,552 units. The largest models remained the most popular, up 8.6% to 31,645 units, accounting for more than a sixth (65.3%) of the market. Reacting to the results, SMMT chief executive Mike Hawes said that while growing overall demand for new vans is encouraging and a barometer of the UK economy’s health, consistently low demand for EVs continues to constrain industry from meeting the UK’s ambitious ZEV mandate – despite manufacturers investing huge sums delivering zero emission technology and incentivising its sale. “For van fleets to go green at pace they need the immediate encouragement – and long-term certainty – of fiscal incentives and van-specific charging infrastructure,” Hawes said, adding; “Without these, UK decarbonisation ambitions cannot be achieved at the world-leading speed demanded by regulation.” 241004 SMMTvan02

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