Light Commercial Vehicle Market: Production in Europe has Spiked

Light Commercial Vehicle Market

Including Europe, the United States, and China, is fueling the demand for a more developed distribution network. As a result, demand for light commercial vehicles for transportation is rising. Major light commercial vehicle manufacturers, including Daimler, Nissan, Ford, and Renault, are experiencing increased sales bolstered by growth in the logistics industry. Pick-up trucks and vans have traditionally filled the requirement for e-commerce transportation for logistics and consumer delivery services, impacting the global light commercial vehicle market substantially.

There is a growing demand for electric and hybrid varieties in the light commercial vehicle space. Government bodies like the London Metropolitan Police & Fire Service have been actively pursuing electric mobility strategies. The organization wants to field a zero-emission fleet by 2025, electrify 40% of its vans by 2030, and achieve total electrification by 2040. This trend is observable throughout the European Union. Norway (65%), the Netherlands (20%), and Sweden (19%) lead the battery electric car segment in the European Economic Area. Larger EU vehicle markets, including Germany (14%), France (9%), Italy (5%), and Spain (3%), are adopting electric vehicles at increasing rates.

Moreover, driven by the potential to enhance energy efficiency and reduce greenhouse gas and pollution emissions, electric vehicles are becoming essential to the global market. This surge is primarily attributed to growing environmental concerns and supportive government initiatives. Notably, global EV sales witnessed a robust 10.82% growth in 2022 compared to 2021. Projections indicate that annual sales of electric passenger cars will surpass 5 million by the end of 2025, accounting for approximately 15% of total vehicle sales.