The UK’s new van market dropped for the third month running in February but there was a much-welcome surge in uptake of fully electric models.
Overall registrations fell 19.3% last month to 14,476 units, marking the month’s lowest outturn since 2020, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).
February is traditionally a low-volume month as many operators postpone procurement until the arrival of the new March number plate – but the SMMT said the drop also showed weak business confidence ahead of upcoming tax changes.
Downturns were seen across all but one segment, with registrations of smaller vans weighing under 2.0 tonnes showing the only increase, up 55.3% to 427 units – representing 2.9% of the market.
Volumes of medium vans were down by 33.0% to 2,119 units, while larger vans, weighing greater than 2.5 to 3.5 tonnes, dropped by 19.0% to 9,962 units.
The smaller volume segments – 4x4s and pickups – also recorded declines, down 45.7% and 4.8% respectively.
But in positive news, uptake of battery electric vans weighing up to 4.25 tonnes grew for the fifth consecutive month, up 55.1% to 1,413 units, with market share rising to 9.7%. That’s up nearly five percentage points on last year February’s 5.1% share – but is well short of 2025’s mandated 16% under the ZEV targets.
The SMMT said the latest figures show a review of the ZEV mandate – on the back of the recently closed consultation – is essential and must deliver measures and flexibilities that tackle lacklustre demand and encourage faster fleet renewal.
Mike Hawes, SMMT chief executive, commented: “Against an increasingly difficult economic backdrop, van manufacturers have shown resilience, but the decline was perhaps inevitable after two years of strong performance. Even in a contracting market, however, zero-emission uptake is positive but still struggles to match the ambition of regulation.
“While the ongoing Plug-in Van Grant provides a lifeline, we still need support to bolster operator confidence, boost demand and deliver decarbonisation. Industry has committed billions to this vital transition and the mandate review must deliver workable measures that enable that commitment to deliver our shared ambition.”
Sue Robinson, chief executive of the National Franchised Dealers Association (NFDA), said last week’s government announcement on a one-year extension to the Plug-in Van Grant, was much welcome for providing stability in the shift to zero-emission vans.
But she added that more needs to be done to “reduce red tape and level the playing field” for commercial vehicle customers, as well as accelerate the transition to zero-emission light commercials.
“Notably, the Government has rejected additional driver training for heavy 4.25t electric vans and has also not addressed their HGV classification, requiring them to undergo an early MOT at truck testing facilities. Additionally, restrictions such as tachograph requirements for driving beyond 62 miles and inadequate public charging spaces for commercial vans need urgent attention.”
