Electric van sales slump as market falls further behind zero emission targets
The already difficult task of electrifying Britain’s van fleet took another knock in March, with battery electric light commercial vehicle registrations falling 15.9% to just 3,543 units, the weakest monthly performance since September 2024.
Figures published by the Society of Motor Manufacturers and Traders show electric vans managed a market share of just 7.1% during what is traditionally the busiest month of the year, thanks to the new number plate change. Diesel, meanwhile, continues its stranglehold on the sector, powering more than 85% of all new LCV registrations.
The wider picture offers little more comfort. Across the first quarter of 2026, battery electric van demand has grown by a modest 4.3%, giving it a 9.0% share of the overall market. That figure sits stubbornly at roughly a third of the 24% zero emission sales mandate manufacturers must hit this year, a gap that looks increasingly difficult to close.
The broader LCV market itself contracted by 3.4% in March, with 49,505 vans, pickups and 4x4s registered. It was the weakest March since 2023 and extends a grim run in which fleet renewal has now declined in 14 of the past 16 months.
A collapse in pickup sales, down 54.0% to 3,732 units, was the chief drag on the market. The sector continues to reel from last April’s changes to Benefit in Kind and capital allowance rules for double cab pickups, which the industry argues are discouraging businesses from replacing older, dirtier vehicles. Large vans bucked the trend with an 8.7% rise to 34,805 units, while medium vans edged up 2.3%.
Despite manufacturers now offering some 40 zero emission LCV models, accounting for more than half the vans available to buy, the uptake figures suggest deeper structural barriers remain. Higher purchase prices compared with diesel equivalents, the cost of depot charging infrastructure and a shortage of public charge points suitable for larger commercial vehicles are all holding back fleet operators.
There have been some encouraging policy moves. The Plug-in Van Grant has been extended to 2027, a new Depot Charging Scheme has been announced, and changes to planning rules for private charger installations are in the pipeline. But the industry maintains these measures alone will not be enough.
SMMT chief executive Mike Hawes described the March figures as deeply concerning, warning that waning electric van demand is increasingly alarming when sales need to accelerate sharply to meet toughening mandated levels. He called for a holistic review of the van transition to be brought forward.
For an electric van market that needs to roughly treble its current share within the year, the clock is ticking uncomfortably fast.
