UK registrations of new light commercial vehicles have risen 10.5% in the second-best November on record but concerns are mounting over uptake of battery electric vans (BEVs) and pickups.
A total of 30,300 new vans, pickups and 4x4s were registered last month, delivering the fourth consecutive month of growth, according to the latest figures published today by the Society of Motor Manufacturers and Traders.
Growth was recorded across all van weight classes in November, with small van volumes up 128.6% to 999 units, medium vans rising by 9.8% to 4,999 units, while large vans saw volumes increase by 13.5% with 20,504 reaching the road.
Registrations of 4x4s also saw a boost, up by 33.4% to 786 units, but pickup registrations fell by 20.4% to 3,012 units. Uptake has been in decline across the year, but the Autumn Budget announcement on new tax treatment for pickups has put that segment in further danger.
With double-cab pickups set to be taxed as cars for Benefit-in-Kind and capital allowances purposes after April 2025, businesses that rely on these vehicles, such as construction, farming, utilities and the self-employed, will face further cost pressure.
The SMMT has now called on the Government to reconsider and uphold HMRC’s decision of February this year to avoid damaging growth prospects.
The SMMT has also reiterated that the promised government review of the ZEV mandate is urgently needed as the latest figures show BEV uptake is still failing to hit targets.
While battery electric van volumes grew by a third in November, the annual market share has retreated further from the 10% ZEV mandate target for 2024 as a whole.
After four months of decline, BEV uptake grew for the second consecutive in November, rising by 36.7% to 2,322 units, in part supported by the Plug-in Van Grant, which will now continue for the next financial year. Market share in November also rose, from 6.1% to 7.7%.
However, under the ZEV mandate, the Government has stipulated that 10% of each brand’s new van registrations must be zero emission this year and year-to-date market share has reversed compared with 2023, down from 5.9% to 5.8%.
The latest market outlook expects volume growth of more than 85% in 2025 – but this would still leave the BEV share of the market at just 10.6% next year against a mandated target of 16%.
Mike Hawes, SMMT chief executive, said: “The UK light commercial vehicle market continues to build back after a challenging start to the year, delivering the best performance since 2021 and the unleashing of pent-up demand. Britain’s appetite for zero-emission vans continues to lag behind government ambition, however, and market share this year is heading in the wrong direction.
“With warnings over UK competitiveness now translating into tangible impacts, a fast-tracked review of market regulation is essential to ensure manufacturers can deliver the choice, growth and decarbonisation the nation needs.”
