Press Release

Cities could lead the way to carbon neutrality as new analysis shows positive outlook for UK electric van market

October 23, 2024

New analysis by T&E and Clean Cities reveals there would be more than enough electric vans on the market to enable zero-emission freight zones in UK cities, which are needed to tackle air pollution and the climate crisis.

New analysis by T&E and Clean Cities reveals there would be more than enough electric vans on the market to enable zero-emission freight zones in UK cities, which are needed to tackle air pollution and the climate crisis.

More than 600,000 e-vans are projected to be sold in the UK by 2030, and sales are expected to go even faster as the government's ZEV mandate starts to require manufacturers to sell more zero-emission vans in the UK. By 2026, there will be more e-van models available than diesel and petrol and by 2027 the average price of an e-van will be cheaper than a diesel van.

The range of the models available today, the study finds, is already suitable for most van drivers. There are already 23 e-van models available with a range above 155 miles, including 3 models with more than 205 miles of range, meaning most drivers have models at their disposal to carry out their daily drives without needing to charge. Company vans drive 109 miles/day on average, though vans carrying goods drive more: 120 miles/day on average for business-to-business (B2B) delivery, and 158 miles/day on average for business-to-consumer (B2C) delivery.

Right now, the proportion of electric vans currently sold in the UK is around half that in the Netherlands, where zero-emission freight zones are being introduced from next year. However, with the right incentives and policies in place, campaigners believe this analysis demonstrates that the Government and city leaders could help businesses in the UK to leapfrog other European countries in terms of electric van uptake in the coming years.

At the beginning of October more than 40 businesses signed a letter to the Mayor of London calling for an extension of the congestion charge exemption for e-vans to support the cost of investing in environmentally friendly fleets. Transport & Environment are also calling on the government to continue the national plug-in van grant beyond spring next year, when it is slated to end.

Oliver Lord, Head of Strategy & UK at the Clean Cities Campaign, said:

“This study shows that, with the right incentives in place, our city leaders can work with businesses to be much more ambitious when it comes to zero-emission freight. Instead of ending perks for electric vans next year, such as the plug-in van grant or the London congestion charge exemption, this government should work with city leaders on a framework of policies so that e-vans become the go-to choice for fleets.”

Ralph Palmer, Electric Vehicles Lead at T&E UK, said:

“The ZEV mandate is going to be an essential driver of the move to electric vans, helping to bring more supply and prices down. But the mandate can’t be the be-all and end-all. If the Government is serious about decarbonising the nation’s van fleets, it needs to have a plan, starting with extending the plug-in van grant beyond 2025 and accelerating rollout of van-accessible charging infrastructure across the country.”

ENDS

Notes to editors:

  • Price analysis is pre-tax and assumes battery size is constant and that costs decline in line with BloombergNEF’s projections.

  • Transport & Environment UK is the UK national office of clean transport NGO Transport & Environment whose aim is to achieve a zero-emission mobility system that is affordable and has minimal impacts on our health, climate and environment and is accessible to all.

  • If you would like to speak to a spokesperson or have any questions, please contact Alexander Killeen via alexander.killeen@transportenvironment.org or 07086431577.

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