The Landscape of the UK’s EV LCV Market: 2025 Update

In 2024 we published a blog about the Landscape of the UK's LCV Market. This blog was really well received so we thought we'd update this in light of the changes to the ZEV Mandate announced this week (7th April 2025).

The UK’s electric light commercial vehicle (eLCV) market continues to shift as new policies, targets and investments reshape how fleets and businesses prepare for the future.

With the Government confirming changes to its Zero Emission Vehicle (ZEV) Mandate in early 2025, the sector now has clearer guidance on deadlines and expectations — but also a more complex set of challenges to navigate.  Here’s what’s changed, what’s ahead, and what it means for those using vans every day to keep their businesses moving.

Government Policy Updates: 2035 Now the Key Date

The Department for Transport has confirmed that the sale of new petrol and diesel vans will end in 2035, extending the previous target of 2030. That means:

• New petrol and diesel vans can still be sold until 2035
• From 2035, all new vans must be zero-emission at the tailpipe (electric or hydrogen)
• Plug-in hybrid and range-extended vans will be allowed until 2035 - but not after

This policy update is designed to give businesses and manufacturers more time to adapt while still delivering on climate and air quality targets.

To support the transition, the Government has introduced the ZEV Mandate, which sets annual targets for the proportion of new van sales that must be zero-emission:

• 2024: 10% of new vans must be electric
• 2027: 46%
• 2030: 70%
• 2035: 100%

Manufacturers can use flexibilities like banking or borrowing credits in the early years, but by 2035, all new vans sold must be zero-emission.

• Major manufacturers are adapting Stellantis, Ford, Maxus and others are ramping up EV production to meet ZEV targets.
• Charging infrastructure is growing steadily, with new government-backed investment announced to support commercial vehicle charging.
• Electric van tech is improving longer ranges, faster charging, and improved payloads are all helping to remove previous barriers.

Despite policy pressure and better availability, the market share of electric vans has remained flat going into 2025. Key challenges include:

• Upfront costs vs diesel
• Uncertainty over charging access
• Limited model availability in some weight or payload categories

Industry bodies have called for more support, including grants, tax incentives and faster charge point roll-out.

If you rely on vans for your trade, service work or local authority contracts, the move to electric may still feel like a future problem — but planning now will help avoid disruption later. CPD VanDemand, help customers navigate this change by:

• Supplying electric-ready chassis and factory-built EVs from trusted manufacturers
• Offering bespoke conversions on electric models (we are Type approved for 4.25T)
• Advising on total cost of ownership and operational fit
• Stocking both diesel and electric options with short lead times
• Providing flexible solutions to help futureproof your fleet 

The phase-out of petrol and diesel vans by 2035 is now confirmed, with interim targets that will gradually reshape the van market in the UK. Businesses don’t need to switch overnight, but early planning, vehicle choice, and build flexibility will make the transition smoother.

CPD VanDemand will continue to monitor changes and support customers in getting the right vehicle for the job, whether that’s electric, diesel, or a combination for now.

References & Further Reading

• UK Government ZEV Policy: https://www.gov.uk/government/consultations/phasing-out-sales-of-new-petrol-and-diesel-cars-from-2030-and-supporting-the-zev-transition/outcome/phasing-out-sales-of-new-petrol-and-diesel-cars-from-2030-and-supporting-the-zev-transition-summary-of-responses-and-joint-government-response
  
• Department for Transport News Release:
  https://www.gov.uk/government/news/backing-british-business-prime-minister-unveils-plan-to-support-carmakers
  
  
• Fleet News:
  https://www.fleetnews.co.uk/news/changes-to-zev-mandate-sale-of-hybrid-cars-and-vans-to-be-allowed
  
  
• SMMT Industry Insight:
  https://www.smmt.co.uk/electric-van-demand-static-in-2024-despite-biggest-overall-market-in-three-years
  
  
• Financial Times:
  https://www.ft.com/content/f11f61a6-fa5b-46cb-8b87-5351546750c3