Electric van sales are rising, but UK targets are outpacing reality

Britain’s van market appears to be moving in the right direction again. Businesses are investing, registrations are growing and demand for larger vans remains particularly strong.

However, beneath those encouraging headline numbers sits a much more difficult question: why are electric vans still struggling to win over British businesses?

According to the latest figures published by the Society of Motor Manufacturers and Traders, 31,602 new vans, pickups and 4x4s were registered in the UK during June 2026. That represented an increase of 12.2% compared with June 2025 and marked the third consecutive month of market growth.

Across the first six months of 2026, registrations reached 158,648 units, an increase of 1.7% year on year. It is not explosive growth, but it does suggest confidence is beginning to return after a difficult period for the commercial vehicle market.

Larger vans are driving the recovery

The strongest demand continues to be seen among the vans businesses rely on to do the bulk of the heavy lifting.

Registrations of vans weighing between 2.5 and 3.5 tonnes increased by 12.6% during June, reaching 21,951 units. Medium-sized vans weighing between 2.0 and 2.5 tonnes performed even more strongly, rising by 62.1% to 6,795 registrations.

Across the first half of the year, registrations in the largest van category were up 13.4%, with 113,114 vehicles joining UK roads.

By comparison, demand for smaller vans weighing less than two tonnes fell by 19.3% in June and was down 33% across the first half of 2026.

That difference is important. It suggests businesses are still investing where there is an obvious operational need, particularly in sectors such as construction, logistics, utilities, servicing and delivery. These are vehicles bought primarily as tools rather than lifestyle accessories, and replacing them cannot always be postponed indefinitely.

The Ford Transit Custom remained the UK’s best-selling commercial vehicle during the first half of the year, with 23,000 registrations. It was followed by the Ford Transit, Volkswagen Transporter, Peugeot Partner and Renault Trafic.

Electric van demand is growing, but not quickly enough

Electric vans also recorded growth, although the figures demonstrate just how far the market remains from the government’s ambitions.

The SMMT reports that battery-electric light commercial vehicle registrations increased by 23.2% in June, reaching 3,700 units and accounting for an 11.5% share of the wider market.

During the first half of 2026, 15,880 battery-electric commercial vehicles were registered. That was an increase of 17.5% compared with the same period in 2025 and lifted electric market share from 8.6% to 9.9%.

On the surface, double-digit growth should be welcomed. More electric vans are being registered, more businesses are considering them and the choice available to operators has improved considerably.

The problem is that the government’s Zero Emission Vehicle mandate requires 24% of manufacturers’ qualifying van sales to be zero emission during 2026.

According to the SMMT, electric van registrations would therefore need to average around 40% of the market during the remaining six months of the year for the industry to reach that headline level. That is approximately four times the market share achieved during the first half of 2026.

It is difficult to see how that gap can realistically be closed before the end of the year.

The vans exist, so why are businesses not buying them?

A few years ago, it was reasonable to argue that the electric van market lacked choice.

That argument is becoming much harder to make. The SMMT says 42 battery-electric light commercial vehicle models are now available in the UK, representing almost two-thirds of the overall van model range.

Today, businesses can choose electric versions of many familiar vans, including models from Ford, Mercedes-Benz, Volkswagen, Vauxhall, Peugeot, Citroën, Renault and MAXUS.

The challenge is no longer simply getting electric vans into showrooms. It is convincing operators that they can perform the same job without introducing additional cost, inconvenience or risk.

For some businesses, an electric van already makes complete sense. A vehicle completing predictable urban routes, covering a known daily mileage and returning to a depot every evening can be an ideal candidate for electrification.

The business can charge overnight, benefit from lower energy and maintenance costs, and avoid relying on expensive public rapid charging.

However, that does not describe every van operator.

A self-employed tradesperson may park on the street and have no reliable way to charge at home. A maintenance engineer could cover hundreds of unpredictable miles in a day. A construction company may need to carry heavy equipment, tow a trailer or send vehicles to remote sites where charging is unavailable.

Payload, real-world range, charging downtime and the cost of installing infrastructure all matter far more to a commercial vehicle operator than an impressive acceleration figure or a large infotainment screen.

A van has to earn money. If switching to electric introduces uncertainty into the working day, many businesses will understandably stay with diesel until the financial and operational case becomes clearer.

A mandate cannot create demand on its own

In my view, the current figures show that regulation and real-world demand are becoming dangerously disconnected.

The government can require manufacturers to sell a certain proportion of electric vans, but it cannot force a plumber, builder, courier or small business owner to buy one when the vehicle does not yet fit their operation.

Manufacturers may respond with larger discounts and attractive finance or leasing offers, but they cannot solve inadequate depot infrastructure, a lack of overnight charging or the operational cost of taking a working vehicle off the road to recharge.

That does not mean the electric van transition should be abandoned or delayed indefinitely. Transport emissions must be reduced, and commercial vehicles have an important role to play in improving air quality, particularly in towns and cities.

It does mean the transition needs to be based on what operators can realistically achieve rather than an increasingly difficult percentage written into a mandate.

The government announced £1 billion of support in March 2026 to help businesses adopt zero-emission vans and trucks. This included electric van discounts of up to £5,000 and additional funding for depot charging, with eligible businesses and public authorities potentially receiving support covering up to 70% of infrastructure costs.

That is welcome, but funding announcements only matter when businesses can access them easily and see a convincing commercial return.

Pickup registrations reveal the impact of tax policy

Electric vans are not the only part of the market being shaped by government policy.

Pickup registrations fell by 57.6% in June, dropping from 2,754 vehicles in June 2025 to just 1,167 in June 2026. Across the first half of the year, registrations were down 55.9%.

Pickups accounted for only 3.7% of the van market in June, compared with 9.8% a year earlier.

This dramatic fall followed changes to the tax treatment of double-cab pickups. Since April 2025, most newly acquired double-cab pickups have been treated as cars rather than vans for Benefit in Kind and certain capital allowance purposes, making them significantly less attractive to many businesses and company vehicle users.

Whatever your view of large pickups, the numbers demonstrate just how quickly tax policy can alter buying behaviour.

That same lesson should be applied to electric vans. Stable, understandable and long-term incentives are likely to be far more effective than constantly changing rules or placing most of the pressure on vehicle manufacturers.

Electric vans need to become the sensible choice

The goal should not simply be to make diesel vans more difficult or expensive to sell. It should be to make electric vans the most sensible option for a growing number of operators.

That means supporting depot and workplace charging, maintaining meaningful purchase incentives, improving charging access for businesses without private parking and helping smaller operators understand the total cost of running an electric van.

It also means being honest about where electric vans work today and where the technology or infrastructure still needs to improve.

Businesses should not automatically dismiss electric vans. Many fleets will already have vehicles and routes that could be electrified without compromising productivity. Looking closely at daily mileage, vehicle downtime and charging opportunities may reveal that some electric vans are cheaper and easier to operate than expected.

But equally, operators should not be made to feel they are failing the transition when the available vehicles or infrastructure do not yet meet their needs.

Growth is welcome, but the hard work starts now

The return to growth in Britain’s van market is positive news. Businesses are continuing to invest in the vehicles that keep the economy moving, while electric registrations are heading upwards.

However, a 9.9% electric share during the first half of the year remains a long way from the 24% mandate for 2026.

The answer cannot simply be to keep increasing the target and hope businesses eventually follow. Government, manufacturers, leasing companies, infrastructure providers and fleet operators need to work together to remove the practical and financial barriers holding the market back.

Electric vans have a significant future in the UK, but that future will be built by making them work for businesses, not simply by demanding that businesses buy them.

Market and registration data used throughout this article is credited to the Society of Motor Manufacturers and Traders, based on its UK light commercial vehicle registration figures for June and the first half of 2026.