The UK government had set ambitious targets for the number of electric vans sold in Britain by 2025, with a goal of 16% of all new vans being electric. However, as of 2024, manufacturers have only managed to sell around 9.5% of their vehicles as electric. This has led to a shortage of demand for electric vans and has forced manufacturers to struggle with the production capacity.
The main reason why the UK's van manufacturers are struggling is because there is not enough demand from big fleets for electric vans. The biggest fleet, Royal Mail, has already made a significant switch to electric vans, but many other companies, including some of the largest energy companies, still want to buy more electric vans as soon as possible.
However, manufacturers are under pressure due to the lack of demand and the fact that they can only use their factory capacity for so long before it becomes uneconomical. Most van makers are still making less profit on their electric van sales than they are on their diesel van sales, which makes them hesitant to increase production.
The main reason why manufacturers are struggling is because of a loophole in the zero-emission vehicle mandate that allows them to earn credits by selling more petrol and diesel vehicles. These credits can then be used to offset the emissions of other vehicles sold, including electric ones.
Despite this, many companies, including Royal Mail and some energy companies, are still committed to switching to electric vans as soon as possible. They see it as a moral imperative to cut carbon emissions and also believe that it is good for business.
The UK government has set further targets for 2026, when the target will be to sell 24% of new vans as electric. The goal is even more ambitious, with sales of petrol and diesel vans expected to be banned by 2035.
The main reason why the UK's van manufacturers are struggling is because there is not enough demand from big fleets for electric vans. The biggest fleet, Royal Mail, has already made a significant switch to electric vans, but many other companies, including some of the largest energy companies, still want to buy more electric vans as soon as possible.
However, manufacturers are under pressure due to the lack of demand and the fact that they can only use their factory capacity for so long before it becomes uneconomical. Most van makers are still making less profit on their electric van sales than they are on their diesel van sales, which makes them hesitant to increase production.
The main reason why manufacturers are struggling is because of a loophole in the zero-emission vehicle mandate that allows them to earn credits by selling more petrol and diesel vehicles. These credits can then be used to offset the emissions of other vehicles sold, including electric ones.
Despite this, many companies, including Royal Mail and some energy companies, are still committed to switching to electric vans as soon as possible. They see it as a moral imperative to cut carbon emissions and also believe that it is good for business.
The UK government has set further targets for 2026, when the target will be to sell 24% of new vans as electric. The goal is even more ambitious, with sales of petrol and diesel vans expected to be banned by 2035.