Mandated EV adoption by OEMs ‘impacting new LCV sales’

New light commercial vehicle (LCV) sales are being impacted by uncertainty in the UK economy and OEMs mandating electric vehicle (EV) adoption, says Shoreham Vehicle Auctions (SVA).

The latest registration figures show that new LCV sales fell by 12.1% in the first six months of 2025, according to the Society of Motor Manufacturers and Traders (SMMT). 

However, SVA says a lack of confidence in the economy and some OEMs insisting fleets buy new electric vans to help them meet their zero emission vehicle (ZEV) mandate targets are slowing the market down.

“New LCV sales are a barometer of how companies are feeling about the economy,” said SVA’s MD Alex Wright. “The fact sales are falling tells us how they are feeling and until they are more optimistic buying new LCVs will not appear on their radar anytime soon.”

He added: “That spells good news for the used market as more companies will look to buy a used instead of a new van.

“That should keep demand and prices strong for used vehicles for the rest of 2025, and we are already seeing some LCVs make £1-2k above book when they go under the hammer.”

The other major trend which SVA is experiencing that is impacting the new LCV market is the increasing number of small to medium fleet operators buying used vehicles at Shoreham’s weekly LCV sale.

This follows more OEMs mandating that operators must buy new electric vans alongside new diesel vans to help them meet their ZEV mandate targets.

Most operators still consider electric vans as unfit for purpose with their range and payload combination poor; they are expensive plus require a charging infrastructure on site and drivers need to take time out of their working day to charge their vehicle, says SVA. Therefore, operators only want to buy diesel vans which are readily available at auction.

Wright continued: “This mandated approach by OEMs is putting off operators from buying new vans across the board as the majority cannot currently justify adding electric vehicles to their fleet as they will compromise rather than add value to their operations.

“Until OEMs change this strategy then smaller fleets will continue to buy 12-18-month-old diesel vans at auction that are predominantly being entered by the big rental fleets.”

“SMEs are also buying used two to three-year old vans currently rather than signing up to expensive new vans on finance as they are uncertain how the economy will affect their businesses in the coming months,” he added.