Registrations of new vans in the UK plummeted last month although electric van deliveries soared.
Uptake of new light commercial vehicles fell by 20.5% in January, dropping to 19,050 vans, pick-ups and 4x4s registered, according to the Society of Motor Manufacturers and Traders (SMMT).
It’s the second consecutive monthly decline following robust growth in 2024, and comes amid a tough economic backdrop and weakened business confidence.
Demand was down in all bar one segment, with small van registrations rising 89.8% to 668 units but still accounting for just a fraction (3.5%) of the market.
Registrations of the largest vans tumbled 22.3% to 11,537 units – representing 60.6% of the overall market – while medium vans fell by 30.4% to 3,507 units.
Registrations of battery electric vans (up to 4.25 tonnes) meanwhile swelled 12.4% to 1,464 units – aided by the continued Plug-in Van Grant. This boosted market share to 7.6%, compared to 4.9% in January 2024.
Further electric van growth is anticipated across the year; the latest outlook published today suggests BEV volumes (to 3.5 tonnes only) will reach 33,000 in 2025. That will give a predicted 10.6% share of registrations – still substantially below the 16% target under the ZEV mandate.
The outlook for the overall market is a 1.2% fall in 2025 to 348,000 units.
More than half of all van models on the UK market available as zero emission, delivering some 33 different choices, but the sector says the Government must back the ZEV mandate with an ambitious fiscal and infrastructure strategy.
The SMMT is calling for mandated faster charge point rollout that meets the specific charging needs of vans compared with cars.
The trade body also says the Government’s review of the ZEV mandate must “ultimately deliver measures and flexibilities to support the industry and the van buyer”.
Mike Hawes, SMMT chief executive, said: “The van market has enjoyed a bullish performance over the past two years but, amid a tough economic environment, businesses are under pressure. It means action is needed to drive fleet renewal and back the industry which has invested massively to produce new EV models.
“The mandate review must, therefore, deliver workable regulation that reflects market realities, and ensure infrastructure rollout that makes fleet decarbonisation a commercially viable, compelling proposition.”
Commenting on the figures, Sue Robinson, chief executive of the National Franchised Dealers Association (NFDA), said the large van segment, which accounts for over 60% of all sub-3.5 tonne commercial sales and largely consists of bulky vehicles used for delivering consumer goods, is often a strong indicator of market confidence and warned that the decline in this sector was particularly disappointing.
She added: “While the 7.6% market share for BEV commercials is encouraging, it remains well below the 16% ZEV target for light commercial vehicles this year – especially concerning with fines for each non-compliant van set to double from £9,000 to £18,000. Another important area to monitor is the upcoming Benefit-in-Kind tax changes for double cab pickups in April, which already seem to be influencing the market.
“The Government needs to recognise the importance of expanding the availability of faster, size-appropriate charging points for commercial vehicles. This is essential to provide light commercial operators with a practical incentive to transition to zero-emission vehicles without placing them at a financial disadvantage.”
