Last month was the busiest October for the new light commercial vehicle (LCV) market in three years, according to SMMT’s latest figures, with 2.4% growth and almost 27,000 vans, pickups and 4x4s joining UK roads. Demand was also at its greenest in 2024, with electric van deliveries rising for the first time in five months, up 61.8% to 2,263 units. Fleets opting to decarbonise should be celebrated, but too few are in comparison with the UK’s mandated levels this year, with EVs representing just 5.6% of all new LCV registrations since January – a considerable distance behind our 10% ambition.
It is a concern as manufacturers have made big investments to grow the choice of EVs for fleets, with more than 30 exciting and competitive models. It was welcome and necessary that the Plug-in Van Grant will continue to be available in the next financial year but, evidently, further intervention is going to be needed. Every lever will need to be pulled, especially with the mandate for EV sales planned to rise to 16% of the market next year. Fleet operators need to be confident that going electric is operationally viable but chargepoint infrastructure, certainly that which is suited to the specific needs of vans, is lacking, and remains a worry for operators that want to decarbonise.
Among the actions needed is regulatory review to treat all zero emission vans equally and safely – from MOT testing and drivers’ hours to tachograph and speed limiter rules – to avoid discouraging investment. It was positive this issue was raised by Sarah Edwards MP at the House of Commons last week with Secretary of State for Transport Louise Haigh stating that review, initiated by the previous government, is being continued.
It was disappointing for the pickup sector, though, that government is not reflecting HMRC’s decision on double cab taxation in February and will, from April 2025, treat those with a payload above one tonne as cars for capital allowances and benefits in kind. It is set to put the future of new pickup market at serious risk, heaping costs on industries which depend on these vehicles, including farming, construction, utilities and the self-employed. In a tough environment for businesses to invest, it needs to be easier and not harder for operators to replace old vehicles in their fleets, which is the quickest path to decarbonising road transport.
