Demand for electric vans from LCV operators has weakened during the last year, according to the latest research from leasing giant Arval.

The Arval Mobility Observatory (AMO) 2025, which canvassed 300 fleet managers in the UK, found that respondents expect electric vans to account for just 14% of the nation’s LCV fleet within three years, down from 15% when the same question was asked in 2024 and 18% in 2023.

By contrast, ICE vans are expected to account for more than 70% of the UK’s LCV fleet in three years’ time, compared to 64% and 62% respectively when the same question was asked in 2024 and 2023.

John Peters, head of AMO in the UK, said fleets were now approaching electric van adoption in a more realistic way, “born from experience”, but added: “This pessimistic view of EVs reflects current difficulties.

“It shows the work industry must do to adopt the technology.”

Peters said van operators cited issues with charging infrastructure as one of the main barriers to electrification but also had concerns over range, payload and towing capacities.

“We can see the improvement in the technology – [I’m] not sure the average fleet manager sees that,” Peters admitted.

Peters said Arval provided a range of tools to van fleets to aid their transition to electrification, including information on whole life costs and calculating which vans within a fleet could be switched from ICE to BEV.

“It remains our belief that the predictions by respondents to our research are pessimistic and that adoption of both electric and PHEV vans will rise substantially by the end of the decade,” he said.

“A key factor here is, of course, the government’s Zero Emission Vehicle mandate. It states that 46% of vans sold in the UK in 2028 will need to be zero emission, so there is likely to be huge market pressure to transition.”

The AMO found the number one reason fleets gave for choosing alternative fuel energies, up from 23% to 32% year-on-year, was to be able to drive in low emission zones.

“This suggests that an increasing number of operators, especially those who work in urban areas, are concerned about future clean air legislation and their ability to access those locations,” Peters said.

While in other areas, such as lower environmental impact, tax benefits, fuel expenses or improved company image there was little change, there was a sharp rise in fleets choosing electric vans to comply with employee requests (up from 17% in 2024 to 23% 2025).

“This is quite an encouraging development,” said Peters, “showing that driver enthusiasm for zero-emission vehicles is generally increasing, perhaps reflecting their experience of using electric vans is positive.”