Van dealers face uphill battle to meet 10% ZEV target in 2024

Van dealers have their work cut out in 2024 to meet the Zero Emission Vehicle Mandate target for BEVs.

Last year BEVs accounted for 5.9% of the van market and this will have to grow significantly to meet the 10% target for 2024 under the new ZEV rules.

The Society of Motor Manufacturers and Traders (SMMT) said the BEV van market was being held back by inadequate number of van-suitable public chargers.

The BEV calls as the SMMT released registration figures for 2023 which showed sales of vans in the UK surged 21% to reach 341,455 units.

More businesses invested in fleet renewal every month compared with the year before – with a record number of zero emission vans joining Britain’s roads.

December was particularly strong, with demand up 36.1% – the best total for the month since 2015.

As a result of rising vehicle investment across the year, 2023 saw the highest demand for new vans since the sector’s post-pandemic bounce back in 2021, with the market just -6.6% below 2019 levels.

Positively, uptake of new battery electric vans (BEVs) hit record volumes in the year as volumes grew by 21% to 20,253 units, representing 5.9% of the market.

With the Zero Emission Vehicle Mandate now in place, however, 10% of every van manufacturer’s sales in the UK must be BEVs this year.

Mike Hawes, SMMT Chief Executive, said, “Rising demand for new vans in every month of 2023 – along with record uptake of battery electric vans – is positive news for the UK, given the vital role of these vehicles in keeping businesses and the economy moving.

Demand for new vans is also essential for decarbonisation and, as the UK’s ambitious mandate for electric van sales comes into effect, every lever must be pulled to make the switch accessible for fleets in every region.

“If 2024 is to be the year of the electric van, investment in chargepoint infrastructure is mission-critical – bringing with it the successful green transition and economic growth the nation needs.”

Sue Robinson, CEO of the National Franchised Dealers Association, said: “Year-to-date market share for battery electric vans has remained at 5.9%, representing no change from the previous year.

“This does not appear to be a good omen, especially with the implementation of the ZEV mandate this week, which will require each qualifying brand to meet a target of 10% of van sales being zero-emissions or face penalties.”

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