Dealers are not expecting the electric van market to flourish any time soon, according to new research published today. 

Just 7% of dealerships feel that the electric van market will fare ‘well’ in 2024, with the majority holding a ‘neutral’ view (56%).

It comes after the Association of Fleet Professionals (AFP) reported that fleets have placed van electrification at the top of their agenda for the year ahead, but face several challenges in deploying the zero-emission vehicles.

Issues around payload, range and charging were proving particularly difficult for some businesses to overcome, it said.

The survey, conducted by the National Franchised Dealers Association (NFDA), also found that around a quarter (27%) of dealerships predict that electric vehicle (EV) sales in 2024 would be ‘better’ in comparison to 2023. Just 4% responded ‘much better’.

The top three most prevalent reasons given by dealerships as to why customers are not considering purchasing an EV include range (82%), anxiety around lack of chargers (82%) and cost (80%).

“NFDA’s 2024 outlook survey has provided some interesting insights on the challenges that lie ahead in the coming year, as well as providing a snapshot on how dealers fared in 2023” said Sue Robinson, chief executive of the NFDA, which represents car and commercial retailers across the UK.

Dealer opinion on optimism with the overall trading environment for 2024 was split with 42% responding ‘slightly optimistic’ and 44% noting ‘pessimistic’.

Robinson said: “Most dealerships do not appear to hold an overly optimistic view of the overall trading environment for 2024.

“As such, it is important that the Government listens to the concerns of the industry during what has proven to be a tough period for the auto retail sector as it navigates its way through the cost-of-living crisis.

“Similarly, with dealerships investing heavily during the transition to electric, it is crucial that the Government provides clarity and guidance surrounding EVs to help stimulate sales this year and avoid EVs flatlining.”