Government confirms petrol, diesel and hybrid van sales permitted until 2035

Dealers have welcomed a major policy update confirming that the sale of new petrol, diesel and hybrid vans will be allowed until 2035, providing much-needed breathing room for commercial vehicle retailers amid slower-than-expected electric van uptake.

The announcement, made by the Department for Transport on 7 April, aligns van regulations with the government’s revised 2035 phase-out date for internal combustion engine (ICE) cars. Previously, sales of small combustion-engine vans were expected to be banned from 2030.

Between 2030 and 2035, however, manufacturers must ensure that the average CO2 emissions of their non-electric van fleets do not exceed 2021 levels, in line with the UK’s broader Zero Emission Vehicle (ZEV) Mandate strategy.

Sue Robinson, chief executive of the National Franchised Dealers Association (NFDA), praising the move, said: “NFDA supports the government’s decision to extend petrol and diesel van and light commercial sales allowances until 2035. This is a positive move and optimistic for the next few years for commercial vehicle dealers.”

The update comes amid concerns over electric van demand. According to the Society of Motor Manufacturers and Traders (SMMT), battery electric van registrations rose just 3.3% year-on-year to 22,155 units in 2024, maintaining a market share of 6.3% – unchanged from 2023. That falls significantly short of the 10% electric van sales target mandated for 2024.

Robinson added: “It is encouraging to see the government acknowledge the NFDA’s recommendation in the Zero Emission Vans consultation. Dealers have been struggling to shift electric van stock in a market with limited demand, so this flexibility is crucial.”