Did OEMs Learn Their Lesson From Electric Van Market Demand?

There are electric medium-duty and heavy-duty trucks, but what about electric commercial vans?

As more fleets transition to sustainable solutions, many companies are having trouble finding electric cargo vans.

Ford and Mercedes do have electric vans, but supply is limited. Why have OEMs been slow to produce them in the U.S.?

An article from Reuters reported that the major automakers are still experiencing supply-chain challenges. And with limited options, fleets seek elsewhere — like the UK, Italy, and China.

International Electric Van Market Is Outpacing the US

Italian truck maker Iveco Group produces three different electric vans, as well as trucks and buses. A spokesman told Reuters, “It should produce several thousand of its new eDAILY ECV model this year, adding that van production has been hit by component shortages and high raw material costs.”

And according to International Council on Clean Transportation, Chinese carmaker Maxus had around 6% of Europe's new electric cargo van market in 2022, including the UK, selling nearly 5,000 vans.

That total is more than Ford, Nissan (7201.T), or Fiat, and up 28% versus 2021.

Plus, Farizon owned by China’s Geely, is looking to take some market share with its electric vans getting delivered in 2024.

In the end, there is more demand than supply. And experts say major OEMs such as Mercedes and Ford underestimated the demand and are struggling to catch up, making room for more competitors.