Van market shrinks for sixth month running

The UK’s light commercial vehicle (LCV) market shrank for the sixth consecutive month in May, with registrations down 11.8% to 22,796 units, according to new figures released by the Society of Motor Manufacturers and Traders (SMMT). This marks the weakest May performance since 2022, as economic uncertainty and tax changes continue to dampen business confidence and fleet investment.

Sales declined across nearly all segments of the market. Large vans saw the steepest drop, down 14.0% to 14,652 units. Medium vans fell 9.2% to 4,065, and small vans dropped 7.8% to just 673 units. Pickups also took a hit, falling 12.7% to 2,690 registrations following the introduction of new tax rules in April. The only segment to grow was 4x4s, up 36.9% to 716 units.

The SMMT has warned that the government’s decision to reclassify double-cab pickups for tax purposes – treating them as cars rather than commercial vehicles for benefit-in-kind and capital allowance purposes – is imposing additional financial strain on core sectors like agriculture, construction, and utilities. The industry body is calling for a one-year delay to give businesses time to adapt and to prevent the unintended consequence of older, higher-emission vehicles staying on the road longer.

Despite the overall market downturn, battery electric van (BEV) sales rose strongly, up 50.0% to 1,731 units in May – the seventh month of consecutive growth. However, BEVs still represent just 7.6% of the LCV market in May and 8.2% year-to-date, well short of the 16% target required under the UK’s Zero Emission Vehicle (ZEV) mandate for 2025.

“Six months of declining new van demand reflects a tough economic environment and weak business confidence – and that won’t be helped by punitive taxes such as on double-cabs that will only restrict wider growth. Fleet renewal with the latest, cleanest models must be encouraged, so it’s positive that zero emission van uptake is rising, but with market share at just half the mandated level, it’s clear we need action to drive that uptake faster.”

The SMMT is urging the government to complement ZEV targets with more aggressive investment in charging infrastructure tailored to LCVs, especially at depots, public sites, and shared hubs. The group is also calling for reforms to speed up grid connection approvals – which can take up to 15 years – and to harmonise local planning processes to give businesses greater clarity and confidence.

With nearly 40 BEV van models now available, the industry insists the technology is ready. Now, it says, infrastructure and policy must keep pace.