Print

Posted in:

New van market rises for 11th month but concerns for EV uptake

UK registrations of light commercial vehicles have risen for the 11th month in a row but battery electric vans (BEVs) suffered a second month of decline.

Demand for medium-sized vans more than doubled, but large vans remain most popular as operators opt for payload efficiencies

A total of 27,433 vans, pickups and 4x4s joined UK roads in November, according to new Society of Motor Manufacturers and Traders (SMMT) figures.

The performance is 12.7% up on November 2022 and 4.6% above pre-pandemic 2019 levels.

Demand for medium-sized vans more than doubled; up 161.1% to 4,554 units. Meanwhile, the rise in registrations of 4x4s and pickups continued, up 6.5% and 14.9% respectively to 589 units and 3,783 units.

But although registrations of large vans – those weighing greater than 2.5 tonnes and up to 3.5 tonnes – were down 1.6% to 18,070 units, they remained most popular, representing 65.9% of the market. Small van registrations grew 10.4% to 437 units.

Year to date, the market totalled 311,754 units – up 19.8% on the same period in 2022 and marking the largest volume for two years as product availability continues to improve.

In contrast, battery electric van demand was down for a second month running, with 1,631 units registered – some 343 fewer than in November last year.

The decline failed to derail the year-to-date gains. A total of 17,289 BEVs have joined UK roads in 2023, up 15.0% compared to the same period in 2022 and accounting for almost one in 18 new vans registered across the year.

But the SMMT said urgent solutions to both the Rules of Origin tariff threat and van-suitable charging infrastructure are crucial to long-term growth.

The Rules of Origin requirements will place tariffs on BEVs traded across the Channel from 1 January – potentially reducing choice and affordability. With four in five (83.6%) BEVs registered this year originating in the EU, and the UK increasing its BEV exports, the new rules pose a clear threat to the transition, just as the ZEV mandate that sets BEV quotas for OEMs comes into effect.

The SMMT also said operator confidence must be safeguarded by accelerating public charge point rollout with a national delivery plan that considers the specific needs of larger vans.

Mike Hawes, SMMT chief executive, commented: “An eleventh month of growth in Britain’s van sector is hugely positive, especially given fleet renewal is key to decarbonisation. It is crucial that operator demand also translates to zero emission van uptake, driving down CO2 emissions to meet Britain’s ambitious environmental targets. These are severely threatened by Rules of Origin requirements due in less than four weeks’ time, so it is essential that a pragmatic solution is found, and fast.”

For more of the latest industry news, click here.

Written by Natalie Middleton

Natalie has worked as a fleet journalist for over 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day.

Natalie edits all the Fleet World websites and newsletters, and loves to hear about any latest industry news.

6638 posts