UK van market drops in October as electric sales dip

The UK new van market declined sharply in October, with registrations down 15.1% to 22,896 units, according to the latest figures published today by the Society of Motor Manufacturers and Traders (SMMT). The drop follows a strong September and reflects weaker business confidence and slower fleet renewal in a challenging economic climate.

Registrations fell across all key segments. The largest vans, which make up more than 70% of the market, were down 7.0% to 16,443 units, while medium and small vans declined by 41.2% and 23.4%, respectively. Pickup registrations dropped 20.2%, partly due to new fiscal rules treating double-cab models as cars for tax purposes. The only area of growth was the small 4×4 segment, which surged 88.0%, though from a low base.

Battery electric van (BEV) registrations also fell for the first time in more than a year, down 5.8% to 2,132 units. Despite the decline, BEVs still took a 9.2% market share, slightly higher than in September due to the wider market contraction.

Year to date, BEV demand remains robust – up 47.4% to 24,250 units – as manufacturers continue to expand model choice and availability. However, BEVs still represent just 9.1% of all new LCV registrations this year, well below the 16% share mandated under the government’s Zero Emission Vehicle (ZEV) targets, which rise to 24% in 2026.

While the government has announced a range of positive measures, including extending the Plug-in Van Grant, launching the new Depot Charging Scheme, and proposing planning reforms for charger installations, the SMMT warned that faster implementation is critical.

In particular, the industry is calling for planning and grid connection reforms to support depot-based operators, many of whom face wait times of up to 15 years for the infrastructure required to electrify fleets. The SMMT argues that grid connections for van depots should be fast-tracked in the same way as those for data centres and wind farms.

Mike Hawes, SMMT Chief Executive, said: “While October’s decline is unsurprising amid the intense economic pressure facing businesses, returning the van market to growth is essential – especially to underpin new investment in zero emission models, which until now had bucked wider trends.

“Every lever must be pulled to get the market back on track. Accelerating infrastructure rollout and grid connections, in particular, will help ensure government targets are not just an aspiration but actually deliverable for manufacturers and operators alike.”

The SMMT’s latest forecast expects the new LCV market to reach 321,000 units in 2025, down 8.7% on last year, before rebounding modestly to 334,600 in 2026. Uptake of zero emission vans is projected to grow by 47% this year to achieve a 9.7% share, rising to 14% in 2026.