Ford Faces Electric Van Challenge as Sales Lag Behind Targets

Ford, the UK’s leading van seller, is currently facing a significant challenge in the electric vehicle (EV) market. Despite its dominant position, the company has fallen behind in meeting government-mandated sales targets for electric light commercial vehicles (LCVs). In 2025, Ford managed to sell only 2,443 electric vans, which accounts for a mere 5.4% of its total LCV sales of 45,190. This figure starkly contrasts with the 16% target set by the Zero Emission Vehicle (ZEV) mandate, highlighting a troubling gap in Ford’s electrification strategy.

How Does Ford Compare to Other Van Sellers?

When we look at the competition, the picture becomes even more concerning for Ford. Volkswagen, the second-largest van seller in the UK, has achieved an impressive 19% EV share, largely thanks to the commercial version of the ID Buzz. Vauxhall follows closely with a 17% share. Overall, electric van sales in the UK reached 6,877 units by the end of May, representing 7.6% of the total 133,798 vans sold in the sub-3.5-tonne category, according to the Society of Motor Manufacturers and Traders (SMMT).

What’s Holding Back Electric Van Sales?

Several factors contribute to the sluggish uptake of electric vans. Higher prices remain a significant barrier, with many businesses hesitant to invest in EVs when cheaper diesel options are available. Range anxiety also plays a role, as potential buyers worry about the distance electric vans can cover on a single charge. Moreover, the lack of penalties for choosing diesel over electric further complicates the transition to cleaner transport.

Despite these challenges, there are some encouraging developments for potential buyers. The government recently extended its Plug-in Van Grant (PiVG), offering £2,500 off the cost of smaller vans and £5,000 for larger models up to 4.25 tonnes. Additionally, businesses can claim 100% of the cost of an electric van against their taxable profits, making the financial case for switching to electric a bit more appealing.

What Changes Are Being Made to the ZEV Mandate?

In an effort to ease the pressure on van manufacturers, the government has made adjustments to the ZEV mandate. While the overarching goal of 100% zero-emission sales by 2035 remains intact, the 16% target for this year has been relaxed. Manufacturers can now halve their EV target for 2025 by committing to exceed future sales targets up to 2030. This flexibility is intended to provide a buffer for manufacturers struggling to meet immediate goals while still pushing for long-term electrification.

Interestingly, the new rules allow manufacturers to count electric car sales toward their electric van targets. For instance, one electric car counts as 0.4 electric vans, while one electric van counts as two electric cars. This cross-counting could provide some manufacturers with a strategic advantage as they navigate the transition.

What’s Next for Electric Van Manufacturers?

As the market evolves, some manufacturers are hedging their bets by adapting internal combustion engine (ICE) platforms to accommodate battery-electric powertrains. While this approach can save on development costs, it often results in higher prices for consumers. For example, the diesel Transit Custom starts at £33,350, while the cheapest E-Transit Custom is over £10,000 more expensive, even with the PiVG discount.

The stakes are high, and the pressure is mounting for companies like Ford to accelerate their transition to electric. As Matt Hawkins, UK head of Flexis—a commercial EV company formed by Renault, Volvo, and logistics firm CMA CGM—notes, the current pace of sales growth is far too slow. With new players entering the market and targeting key segments, Ford and others must adapt quickly to maintain their competitive edge.

The big takeaway? The shift to electric isn’t just about meeting targets—it’s about making smarter adjustments to stay relevant in a rapidly changing market. If you’re considering making the switch to electric, start with one change this week, and you’ll likely spot the difference by month’s end.