The UK light commercial vehicle market grew 22.0% in July, aided by growing demand for electric vans.

A total of 28,578 new vans, pickups and 4x4s joined UK roads last month, marking the market’s fourth consecutive month of growth, according to the latest figures published today by the Society of Motor Manufacturers and Traders (SMMT). Year-to-date registrations reached 187,226 units, up 4.3% on the first seven months of 2025.

Large and medium-sized vans both recorded strong growth, up 29.9% to 20,842 units and 20.7% to 4,993 units respectively. Demand for 4x4s also rose, by 66.1% to 1,030 registrations, while the small van segment grew 11.8% to 825.

Pickups declined for a 10th consecutive month, down 53.2% to 888 units and accounting for just 3.1% of the market. Demand continues to be affected by the reclassification of double cab pickups under Benefit-in-Kind and capital allowance rules. The SMMT continues to urge the Government to reverse the measure as it highlights the vital role these vehicles play in supporting economic activity and encouraging fleet renewal.

Uptake of battery electric vehicles (BEVs) grew 74.1% – the best since August 2025 – to capture a record 14.7% market share. Year to date, market share has for the first time reached double digits, at 10.6%, although this is still less than half the level needed to achieve this year’s mandated target of 24%.

The latest market outlook has been revised upwards to reflect the growth but suggests the current spurt in the overall van market is unlikely to be sustained, with 316,000 units expected to be registered this year – amounting to a 0.2% increase overall on last year’s uptake.

While zero-emission van growth is expected to continue outpacing the wider market, BEVs are anticipated to account for 11.5% of registrations in 2026, rising to 15.9% in 2027 – meaning uptake lags around two years behind mandate ambition.

Despite a vast choice of all-electric models, substantial barriers to the transition still remain. Higher upfront purchase costs, as well as insufficient charging infrastructure and increasing operator pressures, continue to influence purchasing decisions.

The SMMT called again for urgent reform of the mandate regulation, asking for more achievable targets that reflect market demand, as well as the creation of better conditions both for decarbonisation and investment to strengthen the UK’s competitive position.

Mike Hawes, SMMT chief executive, said the record battery electric van uptake was encouraging, proving businesses will switch if business conditions are right.

“However, multiple barriers are constraining the market – high capital expenditure costs, infrastructure challenges and, for pickups, fiscal disincentives,” he stated.

“Rapid revisions to regulation and taxation are required urgently to spur the commercial vehicle fleet renewal essential to the achievement of net zero.”

Sue Robinson of the National Franchised Dealers Association (NFDA) said: “July’s figures point to a resilient LCV market, with registrations continuing to move in the right direction. Despite ongoing cost pressures for businesses, demand across core areas of the commercial vehicle sector remains encouraging.

“Growth in electric van registrations is welcome, but uptake still needs to accelerate if the sector is to close the gap to this year’s ZEV mandate target. While challenges remain, the broader direction of travel for the market is positive.”