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UK HGV Market Grows With Increased Rigid Truck Demand And Zero Emission Uptake
New heavy goods vehicle (HGV) registrations in the UK increased by 2.6% in Q2 2024, reversing the decline seen in the first quarter, according to the Society of Motor Manufacturers and Traders (SMMT). This spring, 11,469 new HGVs were registered, with a significant rise in rigid truck uptake driving this growth as the market stabilises after fulfilling pent-up demand from 2023.
Rigid truck registrations surged by 9.7% in Q2, reaching 6,640 units and capturing a 57.9% market share, up from 54.2% last year. In contrast, articulated truck volumes fell by 5.7%, totalling 4,829 units. The shift towards rigid trucks was evident in the top body types, with increases in box vans (17.3%), curtainsiders (14.9%), tippers (11.4%), and refuse vehicles (14.1%), while tractor unit volumes dropped by 7.4%.
The adoption of zero emission vehicles (ZEVs) also saw growth, with uptake rising by 30.0% to achieve a 0.6% market share, up from 0.4% in Q2 last year. Despite this increase, ZEV market share remains low compared to cars and vans, highlighting the challenge of convincing operators to switch from fossil fuels.
Mike Hawes, SMMT Chief Executive, commented on the market's resilience: "The truck market’s return to growth after a slower start to the year demonstrates its robustness and resilience – particularly as overall uptake continues to keep pace with last year and the pent-up demand that fuelled volumes." He also emphasised Britain's potential leadership in the ZEV truck transition but noted that achieving this requires compelling incentives and infrastructure.
England led new HGV registrations nationally with a 1.6% increase to 9,827 units. Northern Ireland recorded the highest growth at 30.6%, surpassing Wales to become the UK’s third-largest HGV market.
The SMMT highlighted ongoing challenges for operators aiming to transition to ZEVs before non-ZEV HGV sales end in just over a decade. The current grant system is lengthy and covers fewer than half of all available models. Additionally, progress on HGV-specific charging facilities remains slow.
SMMT's Role and Industry Impact
The Society of Motor Manufacturers and Traders (SMMT) is a key trade association representing the UK automotive industry. This sector is crucial for economic growth and net-zero goals, contributing £93 billion turnover and £22 billion value added annually while investing around £4 billion each year in R&D.
The UK automotive industry employs approximately 198,000 people directly in manufacturing and about 813,000 across related sectors such as advertising, chemicals, finance, logistics, and steel. Many jobs are outside London and the South-East with wages around 13% higher than the national average.
The sector accounts for 12% of total UK exports of goods with more than 140 countries importing UK-produced vehicles. This generates £115 billion in total automotive trade imports and exports annually.
Future Prospects
To encourage greater ZEV uptake among operators, reforming grants and investing in infrastructure within a national plan are essential steps forward. These measures would provide more confidence to operators as they transition towards zero emissions by 2035.
The UK manufactures almost every type of vehicle including cars, vans, taxis, trucks, buses, coaches as well as specialist vehicles supported by over 2,500 component providers and skilled engineers globally renowned for their expertise.
The automotive industry also supports vibrant aftermarket services along with remanufacturing industries which further bolster employment across various sectors linked closely with automotive manufacturing.
For more detailed information on UK Automotive statistics visit SMMT's Motor Industry Facts publication at www.smmt.co.uk/reports/smmt-motor-industry-facts/
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