SMMT’s latest data for the new van market showed battery electric van registrations up almost three quarters in July, reaching a record 14.7% market share and taking year-to-date growth into double digits for the first time in 2026. Overall demand for new vans also returned to growth, with registrations up around a fifth in July and a slighter 4.3% year-to-date after a weaker first half period.
Both EV and overall growth matter because fleet renewal and decarbonisation must progress together, driving down overall emissions while keeping businesses moving. But progress must also be judged against the ZEV Mandate given it poses significant ramifications for sector and manufacturer competitiveness. Despite a record-high year-to-date BEV share of 10.6%, it is less than half this year’s mandated target of 24%, while next year’s target of 34% races even further ahead.
It is timely therefore that government has brought forward its review of the regulation, which is an opportunity to set realistic targets that are aligned with the market and manufacturing realities which industry faces. The consultation acknowledges substantial progress, with more than 40 different zero emission van models currently available in the UK; nearly two-thirds of all van models are now available as EVs. Government has also provided substantial support, with the Plug-in Van Grant estimated to have supported nearly 115,000 registrations since 2012, plus additional support such as the Depot Charging Scheme and electric van driver derogation.
But the current trajectory was designed on the basis of optimistic expectations of market conditions that have not come to pass, particularly energy prices, infrastructure roll-out and operator demand. Fleet operators still face higher upfront costs and charging challenges, along with practical concerns about payload and range. Coupled with the slim operating margins which are commonplace in logistics, operators are struggling to transition at mandated levels.
With government still committed to achieving 100% zero emission new van sales by 2035, the consultation will consider adjusting the trajectory up to that point – and it must be meaningful, aligning ambition with market reality, looking beyond marginal adjustments, and considering the whole ecosystem. With the right balance of realism and enablers, manufacturers can continue investing, operators can transition with confidence, and the UK can build sustainable electric van growth on a more certain footing.
