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In July, the UK witnessed a decline of -8.5% in the light commercial vehicle (LCV) market, with 24,689 vans, 4x4s, pickups, and taxis hitting the roads. This data comes from the latest report released today by the Society of Motor Manufacturers and Traders (SMMT). Although this performance is compared to a strong July in 2023, which was the best in a three-year period, it occurred during a record-equalling streak of 17 consecutive months of market growth. Despite this exceptional trend ending in May this year, the market as a whole remains strong, with registrations increasing by 2.7% year-over-year, making it the best seven-month period since 2019.1
The decline in demand during July affected various segments, with the largest vans witnessing a reduction of -12.0%, totaling 16,814 units, which still holds a significant share of 68.1% in the overall market. Furthermore, there was an -8.4% drop in registrations for new medium-sized vans. The deliveries of pickups and 4x4s also saw decreases of -5.1% and -2.1% respectively. However, there was a notable surge in demand for the smallest vans in July, with registrations more than doubling (117.6%) to 929 units. Though fluctuations tend to be more noticeable in smaller volume categories, the new small van market has shown strength throughout 2024, witnessing a 42.0% increase in demand year-to-date, largely due to new model releases.
Manufacturers in the sector are introducing an increasing number of new battery electric vehicle (BEV) models, with the count rising to 28 options available to UK buyers, up from 25 the previous year. These models come equipped with competitive payloads and ranges to cater to a wide array of requirements. However, the number of fleets transitioning to green alternatives decreased by -14.6% in July, with new BEV registrations totaling 1,415 units. Since the beginning of the year, BEVs have comprised 5.1% of all new van registrations, encompassing those weighing up to 3.5 tonnes (4.8%) and above 3.5 to 4.25 tonnes (0.3%), resulting in a -7.0% decline in zero-emission adoption throughout the year.2
Given the government mandate requiring manufacturers to ensure that BEVs constitute at least 10% of new van sales in 2024, there is a crucial need for a significant increase in demand during the remaining months of the year, especially with the upcoming month of September heralding a change in number plates. While substantial investment from the industry has led to a higher presence of BEVs on the streets than ever before, the pace of adoption needs to hasten, with all stakeholders playing their part. An urgent mandate for van-appropriate charging infrastructure is necessary, alongside the extension of the Plug-in Van Grant beyond April 2025, if more businesses are to embrace decarbonization.
The current forecast for the year remains positive, anticipating 351,000 units by the end of this year, reflecting a 2.8% rise compared to 2023. Nevertheless, the estimated BEV share of LCV registrations weighing under 3.5 tonnes has been adjusted downward to 6.6%.3
According to Mike Hawes, Chief Executive of SMMT,
Despite a slight decline in June and July, the new van market in the UK remains robust, backed by a record-equalling growth streak. Manufacturers are introducing attractive product line-ups, ensuring that demand will rebound. The diminishing adoption of the most environmentally friendly models poses a significant challenge, given the UK’s aspiration for zero-emission transportation. While the industry has invested and continues to invest billions in this transition, manufacturers cannot drive this shift in isolation. In light of the inadequacy of van-specific charging infrastructure, there is a critical need for an ambitious rollout mandate for charging points that supports operators nationwide.
1 New LCV registrations, January-July 2019: 222,280 units.
2 Data represents the Vehicle Emissions Trading Scheme with BEV vans weighing > 3.5-4.25t contributing towards each manufacturer’s target, in addition to LCVs ≤ 3.5t.
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SOURCE: SMMT
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