Electric van sales hit October record but remain below ZEV targets

The UK new light commercial vehicle (LCV) market grew by 11.4% in October, with electric van registrations reaching a record high for the month, although demand continues to fall significantly short of government targets, according to the Society of Motor Manufacturers and Traders (SMMT).

A total of 25,510 new vans, pickups and 4x4s were registered during October, marking the seventh consecutive month of growth. Year-to-date registrations increased by 4.8% to 276,885 units.

Large vans continued to dominate the market, with registrations rising 12.9% to 18,560 units, accounting for 72.8% of October volumes. Medium van registrations increased 14.3% to 3,825 units, while 4×4 demand more than doubled, rising 104.3% to 899 units.

However, small van registrations declined by 11.7% to 462 units, while pickup sales fell 17.7% to 1,764 units.

Pickup demand remains particularly weak, with registrations down 52.9% year-to-date following tax changes that brought double-cab pickups into the car tax regime for benefit-in-kind and capital allowance purposes.

Battery electric van (BEV) registrations increased by 58.0% in October to 3,369 units, representing a 12.9% market share and the strongest percentage growth recorded this year.

The increase lifted the year-to-date electric van market share to 11.0%, supported by a growing choice of more than 40 zero-emission models and government incentives, including the Plug-in Van Grant and Depot Charging Scheme.

However, the SMMT warned that manufacturers continue to rely heavily on discounts to stimulate demand and avoid the costs associated with missing Zero Emission Vehicle (ZEV) Mandate targets.

The latest industry outlook forecasts overall LCV registrations will increase by 4.2% to 329,000 units in 2026, with battery electric vans weighing up to 3.5 tonnes expected to achieve a market share of just 10.4%, compared with the mandated target of 24%.

The gap is expected to widen further, with electric vans forecast to account for 14.9% of registrations in 2027 against a 34% target, and 18.8% in 2028 against a mandated 46%.

The SMMT is calling for substantial changes to the ZEV Mandate before the end of the year, warning that current targets do not reflect the practical challenges facing commercial vehicle operators.

Alongside more realistic targets, the organisation is urging the government to provide long-term certainty over purchase incentives, accelerate the rollout of public charging infrastructure suitable for commercial vehicles and address delays in depot grid connections.

“While electric van uptake is accelerating rapidly, demand remains far behind the optimistic and unrealistic expectations of the mandate. Government’s review must provide clear and meaningful trajectory change before the year ends, not marginal tinkering, to avoid damaging the market, and the businesses and economic growth which depend on this sector.”