Demand for new vans soared 44.2% in July, beating pre-pandemic levels and supported by a near doubling in electric van uptake.
A total of 26,990 new vans were registered last month, according to latest figures from the Society of Motor Manufacturers and Traders (SMMT), up on the 18,722 for July 2022. It marked the seventh consecutive month of growth and the best July since 2020 when 27,701 vans were registered. Registrations were also up 4.4% compared with pre-pandemic 2019 volumes; the result of rising demand for new vans, pickups and 4x4s and the easing of supply chain issues constraining production.
Medium-sized vans (greater than 2.0 and up to 2.5 tonnes) saw the highest volume growth and more than trebled registrations, which were up 227.4% in the month.
Large LCVs (greater than 2.5 and up to 3.5 tonnes) increased by 29.3% to 19,111 units and accounted for 70.8% of the market registered in the month.
Deliveries of 4x4s and pickups also saw growth, up 159.3% and 48.3% respectively, while registrations of light vans (up to and including 2.0 tonnes) were the only segment to fall, dropping 40.9% to 427 units.
Best LCV sellers for July were led by the Ford Transit, followed by the Transit Custom and the Vauxhall Vivaro.
Demand for battery electric vans (BEVs) continued to rise, almost doubling – up 94.6% to 1,489 units and with a 5.5% market share. The latter is up from 4.1% last year. For the year to date, 10,292 BEVs have been registered, an increase of 16.1% year on year, although market share has decreased marginally from 5.4% to 5.2%. Across the whole of the van sector, registrations for the first seven months of 2023 rose 20.7%.
Mike Hawes, SMMT chief executive, said: “Following a solid first half, van sales have enjoyed an extremely positive month, beating even pre-pandemic levels. The challenge now is to deliver even greater EV uptake, which requires urgent action to reduce soaring energy costs and increase the provision of dedicated van charging infrastructure to bolster operator confidence and meet the unique needs of this sector. These are vital hurdles to overcome, more so given next year will see a ZEV mandate with minimum sales targets for every brand.”
The latest market outlook, also out today, now expects the LCV market to grow by 16.1% to 328,000 units this year; a slight 0.6% rise on April’s view.
But deliveries for 2024 have been trimmed by 5.2% to 329,000, now only up 0.5% on the expected total for 2023. The SMMT added that while semiconductor shortages have eased, operators continue to face challenging operating conditions, including rising energy and operational costs and little incentivisation
The anticipated BEV share for 2023 has also been trimmed slightly from 7.4% to 7.1%. However, in 2024 BEVs are expected to comprise 11.2% of all registrations.
Sue Robinson, chief executive of the National Franchised Dealers Association (NFDA), said: “Despite the promising uplift in LCV EV demand for July, it remains disappointing that EV light commercials are trailing behind year-to-date figures from last year. Government needs to seriously look at what is holding back eLCV adoption and incentivise more, on both vehicle acquisition and infrastructure fronts.”
