The UK’s new LCV market rose by 3.0% in 2024 to more than 350,000 registrations but the electric van market share remained static.
A robust December with 27,221 new LCVs registered rounded off a total of 351,834 new vans, pick-ups and 4x4s across the year – making 2024 the best year of fleet renewal since 2021, according to the new figures from the Society of Motor Manufacturers and Traders (SMMT).
Demand was up across all van weight classes in 2024. Uptake of the largest vans rose 2.1% to represent 66.3% of the market. New registrations of medium- and small-sized vans also grew, up 12.3% and 44.5% to 65,148 units and 8,606 units respectively.
But registrations of 4x4s fell 9.7% to 7,282 units in comparison with a strong 2023 performance.
And pickups were down 8.3% to 37,582 units – and could fall significantly further in 2025 following the Government’s decision to tax double-cabs as cars for Benefit-in-Kind and capital allowances purposes from April this year.
Electric van uptake also remains a major concern. While new battery electric van (BEV) registration volumes rose by 3.3% to 22,155 units, the share of the overall market was 6.3% – the same as in 2023.
The SMMT warned that such incremental growth in uptake in the first year of the UK’s ZEV mandate reflects the immense challenge ahead to accelerate the decarbonisation of light commercial vehicles.
UK operators had 33 different zero-emission van models to choose from last year, accounting for more than half (52.4%) of all new models available.
But with uptake remaining significantly short of the 10% target for 2024 set by the ZEV mandate, even if, as industry expects, demand rises by more than 85% in 2025, the UK’s BEV share would reach just 10.6% – a significant distance off the 16% required this year.
The SMMT also warns that a lack of van-dedicated public charge points is still undermining fleet confidence in the commercial viability of going electric.
A much-awaited consultation on the UK’s ZEV mandate opened just before Christmas, giving the automotive and charging industries the chance to have their say on the ZEV transition by the end of the decade.
A separate consultation on whether the UK can reduce barriers to roll out more zero-emission vans is also open.
The SMMT said the review of regulation must urgently reflect van-specific barriers to growing EV uptake.
With market demand for BEVs far below expectations when the mandate was designed, it’s stressed that the Government must fast-track the review and ensure the regulation reflects market realities, barriers and the support necessary to drive such growth.
The business group also warned that the ZEV mandate must be accompanied by “equally ambitious incentives and infrastructure rollout – else investment, model choice, growth and decarbonisation will be compromised”.
Mike Hawes, SMMT chief executive, said: “Vans, 4x4s and pickups keep businesses everywhere on the move, making this sector a barometer of the UK economy. The best overall volume in three years, therefore, is good news with van makers striving to deliver abundant and competitive EV choice.
“Buyer confidence, however, will inevitably be undermined when charging infrastructure does not meet the needs of fleet operations. A review of EV regulation is crucial, therefore, to reflect current market realities and ensure ambitions are deliverable, without any negative and costly consequences.”
The National Franchised Dealers Association (NFDA) also said a static market share for BEVs was a particular concern, especially as fines for non-compliant vans are set to double from £9,000 to £18,000 in 2025, alongside the ZEV mandate percentage increasing to 16%.
Sue Robinson, chief executive, added: “NFDA welcomes the inclusion of a section for vans in the Government’s consultation launched last month, which seeks views on proposals to support the UK’s transition to zero-emission vehicles. The needs of van operators differ significantly from those of car users and greater attention must be given to on-street charging infrastructure, as many van drivers lack access to home charging facilities.”
