New van registrations saw their best-ever November as demand soared, but semiconductor shortages are still creating market volatility.
A total of 31,320 new vans were registered last month, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT) – up 9.7% on Covid-impacted November 2020 and, more significantly, an increase of 11.4% on the pre-pandemic average.
Supported by recovery in the construction sector and growing business investment, all van classes saw growth, bar compact vans 2.0 tonnes and under, which fell 19.6% year-on-year following recent rises – laying bare just how unpredictable the supply of semiconductors is.
The highest percentage growth was seen in registrations for the traditionally volatile 4×4 market, which grew 39.9% to 207 units. Uptake of pickups also soared and the market grew 31.2%.
Vans over 2.0 tonnes and up to 2.5 tonnes grew 21.2% to 4,779 units, while larger vans over 2.5 tonnes were up by 7.7%, reaching 22,363 units and accounting for the lion’s share (71.4%) of the market.
The year-to-date picture is also highly positive – the market is up 22.8% for the first 11 months of 2021, supported by robust underlying demand.
The SMMT’s forecast is for the LCV market to return to pre-2019 levels in 2022 – but it has warned that this will depend not just on supply side but also demand side factors, notably the strength of the economic recovery.
Chief executive Mike Hawes explained: “A pre-Christmas boost to van registrations will be welcomed by the industry, but it remains a rollercoaster of a market. Demand is clearly robust, but market volatility is likely to remain a feature as supply chain shortages throttle the sector’s ability to fulfil orders. Manufacturers are working hard to try and overcome these shortages and the November deliveries illustrate the success they have been having in the UK.
“Whilst the outlook remains challenging, customers can be reassured of the industry commitment to the commercial vehicle sector, given its importance to the operation of society and business growth.”
