Van market ends summer with a return to growth

The UK’s new light commercial vehicle (LCV) market returned to growth in August, rising 1.7% to record the best performance for the month since 2021 after two months of decline. According to the latest figures published today by the Society of Motor Manufacturers and Traders (SMMT), 16,575 vans, 4x4s, pickups and taxis joined the road in what is traditionally a low volume month ahead of September’s plate change.

The market for smaller-sized vans, weighing up to and including 2.0 tonnes, continued to increase, up 24.5% to 427 units as new models drove demand. Registrations of medium-sized vans, weighing greater than 2.0 to 2.5 tonnes, grew by 1.9% to 2,771 units, while those of the largest vans, weighing greater than 2.5 to 3.5 tonnes, increased by 1.8% to 11,753 units, remaining the most popular segment with a 70.9% market share. Deliveries of 4x4s and pickups, meanwhile, declined by -12.9% and -2.5% respectively to make up a combined 1,624 units.

Despite the overall market growth, battery electric van (BEV) registrations fell for a third successive month this year and fifth time overall, with 908 registered, down -30.3% year on year. BEVs accounted for just 5.5% of all new vans in August, a fall from 7.9% in August 2023. Over the year-to-date, volumes have fallen by -9.5% and market share has declined to 5.1% – essentially half the 10% zero emission vehicle mandate target, despite increasing numbers of manufacturers introducing all-new zero emission vehicles to expand operator choice.

Year-to-date, the van market is up 2.7% to 218,884 units, with all segments recording growth.

Mike Hawes, SMMT Chief Executive, said, “A return to growth for Britain’s new van sector is encouraging as the market continues its post-Covid recovery.

“Manufacturers continue to produce a range of new models, with many of these zero emission. However, such a significant and sustained drop in demand for electric vans is of deep concern given the ambitious and mandated sales targets required this year and beyond. There is a pressing need to stimulate operator confidence which means providing long term certainty over the Plug-in Van Grant, maintaining fiscal incentives, and accelerating the rollout of van-suitable charging infrastructure. Without these measures, the ability of the UK to meet its net zero goals while driving economic growth will be put under pressure.”