Cost and compliance drive UK LCV strategy as van fleets pivot to used vehicles
The 2026 Arval Mobility Observatory Barometer reveals a resilient but practical UK light commercial vehicle sector, where operators are balancing a slightly more optimistic growth outlook with an increased reliance on second-hand vans, targeted telematics and a critical demand for EV transition support. By John Kendall.
UK light commercial vehicle (LCV) fleets are pivoting toward second-hand models and tightening compliance strategies to combat rising operational costs, according to the Arval Mobility Observatory Barometer 2026.
Conducted by independent research company Ipsos, the annual survey interviewed 10,157 company decision-makers across 33 countries – including 305 in the UK – to establish the short-term shifts shaping corporate mobility. Crucially, the findings reveal that macroeconomic pressures are forcing a practical rethink of vehicle acquisition and fleet management.
The first question addressed the growth potential for LCV fleets in 2026 and for this year, there was a little more optimism with 35% of respondents expecting an increase compared with 30% in 2025. At the same time, just 13% expect a reduction, the same as for 2025.
“Overall, these figures reflect what we perceive as a slightly more optimistic attitude in the light commercial vehicle market, and one that is probably indicative of the wider economy,” says John Peters, head of Arval Mobility Observatory in the UK.
“While there remain quite serious downside risks, especially when it comes to hard-to-predict international interventions such as tariffs, the situation feels relatively stable and the UK is likely to see some economic growth this year.”
“Many of the apparent problems can be solved with slight changes in approach, while the many advantages of electric vans are perhaps unappreciated”
John Peters, head of Arval Mobility Observatory in the UK
“Many of the apparent problems can be solved with slight changes in approach, while the many advantages of electric vans are perhaps unappreciated”
John Peters, head of Arval Mobility Observatory in the UK
Does your organisation operate used or second-hand vehicles in your LCV fleet? UK respondents suggest the majority already do so, or will consider it in the next three years. Almost 40% said they were considering doing so in the next three years while 15% do so already, both showing increases over 2025.
“This enthusiasm for used is highest among the largest companies with more than 1,000 employees, 46% of which expect to buy more, compared to 35% of those with 100-999 employees and 39% with one to 99,” comments Peters. “There are probably a number of factors behind this shift. One is that new vans are simply becoming more expensive, especially for fleets that are electrifying, so cheaper, used examples are becoming a more attractive alternative. Another possibility is that as the ZEV mandate means a greater proportion of new vans for sale will be electric, used will offer a route for fleets that wish to retain at least some diesel capacity in specific operational roles.”
Following on from this, the survey asked what fuel would be propelling vans in the next three years and perhaps not surprisingly, the majority (74%) thought that it would be petrol or diesel, with 16% reckoning on battery electric power. Interestingly 10% thought that it would be some other alternative and none of the respondents thought that it would be hydrogen. “It is widely recognised that fleets face significant challenges when it comes to electric van adoption in areas including range, payload and charging options. These issues cause sometimes significant operational difficulties, so the doubts expressed by our respondents are understandable,” says Peters. “Their forecasts are probably overly pessimistic, though. Our van team works closely with many fleets on electrification and the potential for adoption is much higher than generally recognised across the sector. Many of the apparent problems can be solved with slight changes in approach while the many advantages of electric vans are possibly unappreciated.”
It is perhaps interesting that according to the survey, the UK is more optimistic about electrification than the European or international respondents to the survey. When it comes to asking why companies have adopted electric vehicles for their LCV fleets, there are few surprises. The most common reason is unchanged from 2025 – to be able to drive in a low emission zone. More than 30% of respondents gave this response. Reducing fuel expenses was the second most common reason given at 29%, an increase over the previous two years. Improving company image, tax benefits, compliance with CSR policy and reducing environmental impact all featured strongly in the results. Perhaps fulfilling employee requests, as 23% of respondents indicated, comes as more of a surprise. On the other hand anticipating future restrictive public policies is unchanged from previous years at 18% and belief that the total cost of ownership is comparable or lower than for petrol- or diesel-powered vehicles has slipped back to 16% of respondents.
“Overwhelmingly, their concerns are practical,” says Peters. “The top reason, as last year, is to drive in low emissions zones. Many operators, particularly in cities, are concerned about future clean air restrictions. Electric vans are likely to offer unrestricted access, whatever regulations are introduced.
“Second placed at 29% – and a big jump from 2025’s 20% – is to reduce fuel expenses. This suggests operators are using low-cost methods of charging, such as depot and home charging, to cut their day-to-day expenditure on fuel. Certainly, compared to diesel at the pumps, these charging options are decidedly cheap and represent a key operational benefit of electric vans.
“Other large increases can be seen for improving company image (up from 16% to 25%) and to be compliant with corporate social responsibility policies – which has risen from 16% to 24%. Especially among larger fleets, environmental policies are a driver of electric van adoption, and this is a trend that is probably going to increase in the future.”
With the use of telematics growing in recent years, the survey asked why fleets are using telematics data for LCVs and the answers are fairly predictable. Among UK respondents, the top reason is to improve driver safety/behaviours with 40% choosing this answer. Close behind is something else most will associate with telematics; to locate or improve vehicle security, with 39% giving this reason.
“Third is improving operational efficiency, which largely refers to maximising the effectiveness of route planning,” says Peters. “This has become a crucial area in recent years, especially as more and more businesses have built their proposition around the fast-response delivery of goods and services.
“Finally, it’s interesting to see both reducing fleet costs and environmental impact near the bottom of this list,” continues Peters. “Telematics can have a very positive effect in both these areas – indeed, there is an argument the adoption of one naturally leads to the other – and it is surprising more fleets aren’t taking advantage of their data to bring about improvements.”
To round off the survey, UK respondents were asked if they were looking for support with electrifying their van fleets, to which 88% replied that they were. This was up from 74% last year, which in turn was a drop from 85% in 2024.
“From our experience, the ease with which fleets electrify varies widely,” says Peters. “A business that carries light loads, delivers locally and has easy access to charging is likely to encounter very few problems. One that relies on its vans to cover hundreds of miles every day, with a full payload and using mainly highway charging, will face many more operational hurdles.
“Expert external advice can be invaluable in tackling these challenges and, like other suppliers, we have worked with many fleets in recent years on successful electrification projects, gathering a wealth of best practice ideas. These can be applied whether you are dipping your toe into the water with your first few electric vans or want to completely electrify.”
Key takeaways for EV Fleet World readers
- LCV growth optimism edges up: Confidence in fleet expansion has risen, with 35% of UK decision-makers expecting their light commercial vehicle fleets to grow in 2026, compared to 30% in 2025.
- The used van strategy: Faced with rising new vehicle prices and the impending impact of the ZEV mandate, 54% of UK LCV operators now run used vans or plan to adopt them within the next three years. This trend is strongest among large enterprises (1,000+ employees), where 46% expect to buy more second-hand assets.
- The reality gap in EV adoption: While 74% of respondents expect their vans to remain petrol- or diesel-powered over the next three years, only 16% project a shift to battery electric vehicles (BEVs). Zero respondents expect to use hydrogen.
- Clean air zones and fuel costs dictate EV shifts: For those adopting electric vans, the primary catalyst remains the necessity to navigate low emission zones (32%), followed closely by a sharp jump in those looking to reduce fuel expenses (up to 29% from 20% in 2025).
- Safety and security head telematics use: Compliance and asset protection dominate data deployment, with the top reasons for using telematics being driver safety/behaviour (40%) and vehicle security/tracking (39%). Cost reduction and environmental benefits remain surprisingly underutilised at the bottom of the list.
- An overwhelming cry for electrification support: A striking 88% of UK fleet operators are actively seeking external expert guidance to navigate the operational hurdles of van electrification – up from 74% last year.
of UK LCV operators run used vans or plan to adopt them within the next three years
the primary catalyst for adopting electric vans remains the necessity to navigate Low Emission Zones
of UK fleet operators are seeking expert guidance to navigate the van electrification challenge
