UK light commercial vehicle registrations fell 6.0% to 16,165 units in February, new data shows.
A total of 16,165 vans were registered last month, compared to 17,205 in February 2021 when pent-up demand saw the market grow 22.0%.
The Society of Motor Manufacturers and Traders (SMMT) said the fall was due to the semiconductor shortage but also noted that the second month of the year is historically volatile due to small volumes, as many operators delay acquisitions until the new number plate in March.
Despite the supply shortages, and rising economic headwinds including inflation, the market remained 14.6% above pre-pandemic levels, reflecting continued demand from key sectors.
Looking at the individual segments, registrations of large vans declined by 9.9%, but demand for medium-sized vans, the second biggest segment by volume, grew 36.9%.
Small vans and pickups fell by 52.2% and 36.0% respectively, while high demand for 4x4s continued, increasing by 49.0% – but this remains a fractional segment.
Notably, demand for battery electric vans grew by 347.6% in the month with 1,741 units registered, primarily as a result of some significant fleet orders.
But overall uptake still remains some distance behind passenger cars and the SMMT said it was vital that investment in electric vehicle charging infrastructure gives confidence to businesses and self-employed van operators across the UK to make the switch.
Year-to-date, LCV registrations are down by 18.2%. But this compares with a strong start to 2021, when the construction and home delivery sectors were significant drivers of demand.
Latest SMMT forecasts predict that the LCV market will grow 2.0% overall in 2022, ending the year just shy of pre-pandemic levels and indicating a stabilisation of the market.
Mike Hawes, SMMT chief executive, said: “LCV registrations have had a slightly slower start compared to last year’s bumper performance, reflecting the cyclical nature of fleet operator investment, but remain strong.
“Global supply shortages and economic headwinds remain a challenge, however, and the sector’s switch to zero-emission vehicles must become mainstream. More electrified models are coming onto the market this year but we need the charge point rollout to accelerate, giving more operators greater confidence to transition to the latest electric vans.”
