The UK's big commercial fleets have made progress in switching from polluting diesel engines to electric vans, but the journey has been slower than expected. While Royal Mail and other large fleets are embracing the shift, smaller operators have found it harder to adapt. The government had set a target of 16% of new vans sold being electric by 2025, but manufacturers only managed 9.5%, with some struggling to meet demand.
Electric vans offer significant cost savings for larger fleets, with estimates suggesting they can save around Β£12,200 over three years compared to diesel equivalents. However, upfront costs are still higher, and charging infrastructure remains a challenge for many drivers. Some manufacturers have closed factories or scaled back production due to the lack of demand, while others have expressed frustration at the pace of change.
The industry is now looking to 2026 when the headline target for electric van sales increases to 24%, and by 2030, it will reach 70%. The government has introduced flexibilities in the zero-emission vehicle mandate, allowing manufacturers to earn credits for selling petrol and diesel vehicles, which has led some to question whether the current pace of change is sufficient.
Despite the challenges, many companies are already making significant strides in adopting electric vans. Openreach, BT's fibre broadband subsidiary, has started using micro-electric vehicles, while energy companies Ovo and SSE are also embracing the technology. The Climate Group's EV100 campaign aims to get big fleets to switch to electric vans, and its members are "can't get enough" of them.
However, van makers face pressure to boost their margins, as most electric van sales still generate lower profits than diesel sales. As a result, some manufacturers have scaled back production or closed factories. The second-hand market is expected to play a significant role in increasing adoption rates, with vans used by large fleets eventually hitting the market and giving sole traders electric options.
As the industry continues to evolve, it remains to be seen whether the pace of change will accelerate in the coming years. While some manufacturers are embracing the shift to electric vans, others still face challenges in meeting demand.
Electric vans offer significant cost savings for larger fleets, with estimates suggesting they can save around Β£12,200 over three years compared to diesel equivalents. However, upfront costs are still higher, and charging infrastructure remains a challenge for many drivers. Some manufacturers have closed factories or scaled back production due to the lack of demand, while others have expressed frustration at the pace of change.
The industry is now looking to 2026 when the headline target for electric van sales increases to 24%, and by 2030, it will reach 70%. The government has introduced flexibilities in the zero-emission vehicle mandate, allowing manufacturers to earn credits for selling petrol and diesel vehicles, which has led some to question whether the current pace of change is sufficient.
Despite the challenges, many companies are already making significant strides in adopting electric vans. Openreach, BT's fibre broadband subsidiary, has started using micro-electric vehicles, while energy companies Ovo and SSE are also embracing the technology. The Climate Group's EV100 campaign aims to get big fleets to switch to electric vans, and its members are "can't get enough" of them.
However, van makers face pressure to boost their margins, as most electric van sales still generate lower profits than diesel sales. As a result, some manufacturers have scaled back production or closed factories. The second-hand market is expected to play a significant role in increasing adoption rates, with vans used by large fleets eventually hitting the market and giving sole traders electric options.
As the industry continues to evolve, it remains to be seen whether the pace of change will accelerate in the coming years. While some manufacturers are embracing the shift to electric vans, others still face challenges in meeting demand.