Uptake of brand-new LCVs rose for the 10th month running in October on the back of easing supply chain disruptions.
New figures from the Society of Motor Manufacturers and Traders (SMMT) show 26,342 vans, pickups and 4x4s were registered last month – up 17.7% year on year.
The growth is some 3.8% above pre-pandemic 2019 levels and brings the year-to-date total to 284,321 units – up 20.5% from the same period in 2022 and marking the highest volume for two years.
Growth was driven by a doubling of demand for medium-sized vans, rising by 106.1% to 3,801 units. Large vans – weighing greater than 2.5 tonnes to 3.5 tonnes – rose 5.3% to 18,176 units, ensuring they remained the most popular segment with a 69.0% of the market.
There was also a jump in demand for 4x4s and pickups, up 61.4% and 41.1% respectively, while registrations of the smallest vans continue to fall; 20.4% below last year at 438 units.
Battery electric van registrations however fell 20.2% to 1,362 units in October, taking just a 5.2% share of the market; down from 7.6% for the same month last year and almost half of the 10% that van makers will be expected to achieve for the zero emission vehicle mandate from 2024.
The SMMT said last month’s figure was skewed in comparison with a particularly large fleet order in October 2022 and pointed to the year-to-date figure, which shows registrations are up 19.8% since January, accounting for one in 20 (5.5%) new LCVs so far this year. That’s the same percentage as the first 10 months of 2022 though and uptake rates will need to accelerate as the ZEV mandate comes into effect from 1 January.
The SMMT is now calling on the Government to “pull every lever to stimulate demand”, with van-suitable charge point rollout and driving licence derogation needed in time to support green growth.
Mike Hawes, SMMT chief executive, commented: “As the crucial pre-Christmas delivery period commences, there is a clear appetite for fleets to be fitted out with the latest vans – and it is of critical importance that those vans are the latest, cleanest zero-emission models. With van makers committed to decarbonisation, the upcoming Autumn Statement is the moment for government to send the right signal to operators ahead of the introduction of the zero emission vehicle mandate.
“Measures that address van-specific infrastructure challenges and enable more operators across the UK to make the switch are essential as we move towards a pivotal stage of the transition.”
Van market outlook for 2023 ramps up but BEV forecast slowed
The SMMT has also revised its van sector outlook for 2023 on the back of the latest figures.
With the overall market enjoying 10 consecutive months of growth, the outlook for the year has been revised upwards to 332,000 units, marking a 1.4% rise on July’s outlook.
However, anticipated BEV registrations have been cut by 9.0% on the previous outlook to 21,000 units – still 26.8% above 2023 – to a 6.3% market share.
Looking further ahead, 2024 is expected to see 334,000 new van registrations, with 34,000 BEVs exceeding 10% of the overall market.
