Making the van transition work for fleets

Toby Poston of the BVRLA looks at the current state of van decarbonisation and what solutions will unlock the market.

A Labour government, intense scrutiny over MP’s expenses and gifts, and Oasis making headlines. In many ways, 2024 has been the year of the comeback. Alongside those familiar events at a national level, our sector has faced the unknown as official government targets for registrations of zero-emission vehicles moved from concept to reality.

The Zero Emission Vehicle (ZEV) mandate was introduced in January and is having a fundamental impact on the automotive supply chain. Some of the changes were predicted and the fleet sector was able to prepare. This has enabled pockets of the market to be up to – and ahead of – the targets set out by the mandate, which requires 22 per cent of new car registrations in 2024 to be for zero-emission vehicles.

They are but pockets of success and the mandate has created unintended consequences too. The terms of engagement between those bound by the targets (vehicle manufacturers), and those that hold the key to compliance (fleet operators and the leasing sector), are shifting.

One of the sectors falling short of decarbonisation targets is also one of the biggest. Vans.

The UK’s workhorses

Vans power the UK economy. One in ten workers – 3.4 million people – rely on vans across diverse sectors, including engineering, construction and emergency services. They represent the fastest growing part of the UK’s vehicle parc, accounting for more miles being driven on our roads every year. Without vans, the economy stalls.

For the UK to get anywhere near its road transport decarbonisation targets, and kickstart the economy, vans need to be front of mind.

Currently they are not. Fleet operators are facing challenges with infrastructure, regulation, affordability, and vehicle availability. Their transition to zero-emission vans is being hindered at every turn.

The impact of these challenges is clear as day in the new vehicle registration data. The van sector closed 2023 with battery electric vans accounting for 5.9 per cent of registrations. This year, the ZEV mandate requires that number to grow to 10 per cent. 

Such a jump was always ambitious. Latest data suggests it is nigh-on-impossible. Year to date, zero-emission vans account for around
five per cent of new registrations. No single month in 2024 has seen electric vans take a greater share of the sector than recorded last year.

At best, electric van adoption is level year on year.

This is not for lack of trying. Supported by their partners and vehicle providers, fleet operators are exploring how to make the transition work for them. Their ambition must now be matched by that of industry partners and decision makers.

Putting a plan in place
How to bridge that gap was the grounding of the Zero Emission Van Plan, a joint campaign by the BVRLA, Logistics UK, RECHARGE UK, the Association of Fleet Professionals (AFP) and The EV Café.

Launched in Parliament earlier this year, it highlights where action is needed to avoid leaving 3.4 million van users behind in the UK’s zero-emission journey. Key asks and recommendations underpin the Plan, split into factors that impact affordability, vehicle charging, and regulations.

Another element holding the transition back is the lack of suitable vehicles.

Although new launches are coming at an increasing rate, we are yet to see a steady flow of electric vans that meet the needs of many operators. Range, towing capability, and on-board power are three key barriers yet to be addressed.

The new Labour government has been open since day one about the country not having a strong financial footing from which to invest. Its plans in the early years of this term are likely to be guarded, with intense scrutiny on where every pound is being spent.

Unlocking the sectors that can accelerate progress is essential. With such a wide footprint across every sector, vans present such an opportunity, while supporting the government in meeting its ambitious decarbonisation targets too. 

Assisting affordability

The Zero Emission Van Plan highlights that the average price for a new electric van is 50 per cent higher than a diesel equivalent. When factoring in the high costs to use a public rapid charger – impacted by global factors and up to 25 per cent more per mile than ICE vans – the costs to source and run an electric van don’t add up for many.

A critical support that has enabled those to have made the switch to do so, has been the Plug-in Van Grant. It provides up to £5,000 off the cost of a new large electric van (£2,500 for small evans) and helps to close the gap between ICE and EV. It is currently due to end in March 2025; we need to see it extended so more operators can start their transition sooner.

New registrations only tell part of the story. For every new van sold in the UK, 2.5 are sold on the used market. The majority of pre-owned vans are operated by sole traders and the SME sector. They depend on their vehicle for their livelihood and are more heavily hit by increasing costs or periods of vehicle downtime. For electric vans to work for them, more support is needed. The potential in used electric vans can’t be overlooked.

Increasing infrastructure

The second cornerstone of the Zero Emission Van Plan is improving vehicle charging. The UK’s EV charging network is expanding all the time, with more chargepoints being installed and innovative solutions enabling more people to charge in more areas. The key aspect is that it is not purely seen as a numbers game. The magic is in getting the right chargers in the right places, accessible by the right users.

The opportunities span public and private networks, with both playing a vital role in supporting the switch. The government introduced Public Charge Point Regulations last year and we are pushing to see them used in such a way that works for electric vans. Bay sizes, location, and the ability to book ahead are three areas that would transform operators’ fortunes when away from their depot.

Reducing red tape

Regulatory barriers are also restrictive, with many examples of where historic requirements are failing to keep pace with an evolving environment. The additional weight that a battery adds compared to a petrol or diesel engine is seeing some electric vans fall into regulatory frameworks designed for trucks. In practice, this means earlier MOTs, fewer approved places to conduct tests, and tighter limits on driver hours.

These regulations create cost and confusion. 4.25t vans should be seen as just that, not trucks, and treated appropriately.

Vital to a green economy

Vans are the backbone of our economy, providing an essential form of transport and a mobile workspace. They are growing in number every year and account for a major portion of the miles driven up and down the country. If the UK is to meet its road decarbonisation targets, zero-emission vans must now take centre stage. Through the Zero Emission Van Plan, industry events, and direct conversations with decision makers across government, we are discussing the challenges faced by operators with those able to drive positive change. 

Vans are a vital player in the fair transition to a green economy. They command more attention.