The UK new light commercial vehicle market fell 4.5% in June, bringing a record-equalling 17-month growth run to an end.
A total of 33,066 new vans and light commercials were registered last month, down from 34,360 units in June 2023, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).
The automotive trade body said the scale of June’s decline was, in part, artificially inflated compared with 2023 – which saw the best June performance for four years as the industry met pent-up demand following Covid.
It also noted that the van market has recorded its best first half since 2021 – up 4.5% on last year to 177,620 new vans, pickups and 4x4s despite the June decline.
The latest figures show the heavier sectors of LCVs have increased, with 2.0-2.5t vans increasing to 7,169 units from 6,291 units, a 14.0% increase. The heavier and most popular-sized vans (2.5-3.5t) saw a decline to 21,677 units from 23,640 units, an 8.3% decrease.
June’s registration figures also show that battery electric van demand declined for the third month this year, down 16.8%, to 1,476 units and resulting in a drop in market share, from 5.1% to 4.5%.
BEV volumes are also down 5.1% YtD, representing 4.7% of the total market share versus 5.2% for the first six months of 2023.
With manufacturers mandated to ensure zero-emission vehicles comprise a minimum of 10% of their new van registrations this year, market share heading in the opposite direction is a big cause for concern.
Mike Hawes, SMMT chief executive, said: “The best first half of a year since 2021 is great news for a market so intrinsic to economic growth, but this optimism will only continue if action is taken to re-energise zero emission van demand. A new government provides an opportunity to bolster the market with a strategy to grow the UK’s van-specific charging network at pace and maintain essential fiscal incentives to keep this vital market on track, without which our net zero ambitions will be at risk.”
Sue Robinson, chief executive of the National Franchised Dealers Association (NFDA), said all eyes will be on the next government for support.
“The new government needs to address the vast price difference for electric LCVs that makes them non-viable for businesses and create a better charging infrastructure to support the bigger vehicle dimensions.
“Today’s figures highlight the crucial need for the next government to address the concerns of the LCV sector. These concerns, detailed in the NFDA’s general election manifesto, include removing unfair regulations for heavier, electric vans and increasing HGV MOT capacity by introducing delegated testing.”
