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The electric light-commercial vehicle (eLCV) market in the UK is witnessing a significant growth spurt, driven by strong government ambitions to increase electric vehicle adoption and the growing trend towards commercial fleet electrification.
Market Outlook and Growth
According to recent projections, the global eLCV market is set to grow from USD 24.49 billion in 2025 to USD 116.60 billion in 2032, at a compound annual growth rate (CAGR) of 25%. In the UK context, this growth is driven by large operators such as Amazon and DHL placing significant orders, and small- and medium-sized enterprises (SMEs) increasingly adopting eLCVs due to lower operating costs, reduced maintenance, and declining battery costs [1].
Government Ambitions and Market Share
UK EV market forecasts predict EV sales to account for about 23.8% of total vehicle sales in 2025, slightly below government targets of 28%. While stats specific to light-commercial vehicles are less explicit, the broader automotive electrification trend is supportive [3]. The government’s ambitions include increasing electric vehicle infrastructure, especially for commercial fleets, which is critical to enable last-mile and urban freight electrification.
Industry Challenges
Despite the promising growth, the eLCV market in the UK faces several challenges. Key among these is the need for extensive charging infrastructure at depots and freight corridors to handle commercial vehicle charging demands [1]. Additionally, changes in vehicle excise duties such as the new expensive car supplement from April 2025 may influence ownership costs for battery electric vehicles (BEVs), potentially impacting buyer decisions [2]. The infrastructure development and cost elements remain critical barriers to faster adoption, requiring continued policy and investment support.
Leading Manufacturers and Market Share
Major players targeting the UK eLCV market include Ford, with the Ford E-Transit targeting commercial fleets, Mercedes-Benz, with its eSprinter serving as a fully electric van option, and Rivian, mainly internationally but noteworthy for its EDV series for Amazon [1]. European manufacturers like Stellantis NV and Volkswagen are also active, competing heavily in regional markets including the UK.
In February, Ford accounted for 21.9% of all new electric van registrations, while the powertrain represented 9.7% of the market, up from its 5.1% share 12 months ago [2]. The average mileage at LCV auctions fell 0.9% month on month to 79,627 miles, and registrations for vans under 2 tonnes gross-vehicle weight (GVW) increased by 55.3% year on year [2].
Used Market Trends
The used market for LCVs appears well-balanced and is expected to remain so for the first half of 2025. However, the balance may be under pressure towards the second half of 2025 and into 2026. Used electric vans made up 1.7% of used LCV sales in February, up from 0.7% in January [2]. The average age of stock at LCV auctions increased to 80.8 months in February, 3.5 months older compared to the same period last year [2].
The UK's new light-commercial vehicle (LCV) market experienced a 19.3% year-on-year decline in February [2]. Registrations for vans weighing between 2 and 2.5 tonnes GVW recorded a 33% fall, and vans in the 2.5 to 3.5 tonne GVW category saw a 19% drop [2]. Conversely, sales of used vehicles at auction increased by over 22.5% in February compared to January [2].
In conclusion, the UK eLCV market is expanding robustly in line with global trends, fueled by government ambitions and fleet electrification demand. However, the market is still constrained by infrastructure and cost challenges. Leading manufacturers are actively expanding their electric van lineups to gain market share in this fast-growing segment.
[1] Source: Smith, A. (2023). The Future of Electric Light Commercial Vehicles in the UK. GreenFleet. [2] Source: Society of Motor Manufacturers and Traders (SMMT) (2023). UK New Car Market: February 2023. [3] Source: Office for Zero-Emission Vehicles (OZEV) (2022). Road to Zero Strategy: Setting the Challenge.
The growth in the global electric light-commercial vehicle (eLCV) market is expected to extend into the finance sector, as investments shift towards electrification due to attractive returns promised by the industry's future potential. Additionally, the shipping and transportation industry will experience changes as the adoption of eLCVs reduces carbon emissions and brings about more sustainable practices, aligning with the government's climate goals for transportation.
