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UK van demand drops again despite rising EV uptake

UK buyer demand for new vans has shrunk for the fourth month running despite the arrival of the new ’25 plate.

Demand for new battery electric vans (BEVs) weighing up to 4.25 tonnes grew for the sixth month in a row

A total of 51,221 vans, 4x4s and pickups were registered in March, down 3.2%, according to the new figures from the Society of Motor Manufacturers and Traders (SMMT).

It’s the fourth consecutive monthly decline as weak business confidence continues to hold back investment.

Lower volumes were driven by a 10.0% drop in registrations of the largest vans which, at 32,025 units, still remain the most popular segment with 62.5% of the overall market. Deliveries of medium-sized vans and 4x4s also fell, by 8.5% and 18.9% to 8,180 units and 1,324 units respectively.

There were some pockets of positivity. Rising demand for smaller vans continued for the 13th successive month, up 60.8% to 1,585 units – now claiming 3.1% of the market.

Registrations of new pickups, meanwhile, surged by 40.6% last month with 8,107 of the latest models and variants joining UK roads – but this was ahead of the arrival of measures on 1 April 2025 that treat double-cabs as cars for Benefit-in-Kind and capital allowance purposes.

And demand for new battery electric vans (BEVs) weighing up to 4.25 tonnes grew for the sixth month in a row, up 40.3% to 4,215 units – a new monthly high and aided by the extended Plug-in Van Grant, as announced in the 2024 Autumn Budget.

This gives BEVs an 8.3% share of the market over the first three months of 2025, up 2.8 percentage points on the same period last year – supported by new market arrivals, with more than half of all van models on the UK market available in zero-emission form.

However, that still represents just half the 16% market share targeted for 2025 under the ZEV mandate, and the SMMT said success requires urgent action to encourage more van operators to switch. This includes guarantees that LCV-suitable infrastructure will be ramped up, along with workable regulation that ensures market growth and decarbonisation.

Mike Hawes, SMMT chief executive, said: “Vans, pickups and 4x4s are critical for business operations across the UK so four months of falling investment is concerning and reflects weak confidence, with further constraints set to impact the pick-up segment. It is positive, however, that electric uptake continues to rise thanks to growing model choice. Even so, with demand still well below 2025 ambitions, suitably bold plans for infrastructure rollout and workable regulation are needed to grow operator confidence and the investment that is needed.”

The SMMT also called again for the Government to postpone the fiscal changes for double cab pickups.

It’s warned that the new measures will “heap additional costs on businesses in sectors that make an important contribution to national and local economic growth – from automotive and farming to construction, utilities and sole traders – causing many to hold off investing, keeping more polluting vehicles on the road and, counterproductively, reducing tax revenues”.

The trade body added: “Given the UK’s highly challenging economic environment, SMMT urges government to delay the measures for at least one year so industry, businesses and vehicle buyers can prepare for the change.”

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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.

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