The electric Light Commercial Vehicle (e-LCV) market is rapidly accelerating and increasingly competitive.
The market has doubled year on year since 2018, with 12,500 vehicles registered in 2021. When you consider this was under the cloud of the semi-conductor shortage, the Covid-19 Pandemic, and the resulting long wait times for new vehicles, it is realistic to expect a large boom in the market once production catches up with demand.
With the sale of diesel and petrol LCVs and cars banned from 2030, coupled with the introduction of Low or Zero Emission zones in numerous cities across the UK, electric vehicles are becoming a necessity rather than a choice, especially in urban areas, as we aim for cleaner and greener cities. The whole-life cost of e-LCVs tends to be cheaper than their ICE (Internal Combustion Engine) counterparts, due to lower maintenance costs and fuel costs.
However, there are still many barriers to e-LCV adoption, with issues around charging infrastructure, the upfront cost of the vehicles, range anxiety, and more recently the rising cost of energy. In this Market Outlook, we outline the market as it exists today (Q4 2022), the rate of anticipated change over the next few years, the drivers of change, and perceived barriers to e-LCV adoption in commercial fleets.