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UK Van Market Ends Summer On A High Note With Growth In August 2024
The UK’s light commercial vehicle (LCV) market saw a 1.7% increase in August, marking the best performance for the month since 2021. According to the Society of Motor Manufacturers and Traders (SMMT), 16,575 new vans, 4x4s, pickups, and taxis were registered. This growth follows two months of decline.
Smaller vans weighing up to 2.0 tonnes experienced a significant rise in demand, with registrations up by 24.5% to 427 units. Medium-sized vans, weighing between 2.0 to 2.5 tonnes, also saw an increase of 1.9%, reaching 2,771 units. The largest segment, vans weighing over 2.5 to 3.5 tonnes, grew by 1.8%, totalling 11,753 units and holding a dominant market share of 70.9%.
Despite overall market growth, battery electric van (BEV) registrations fell for the fifth time this year, dropping by -30.3% to just 908 units in August compared to last year. BEVs now account for only 5.5% of all new vans registered in August, down from 7.9% in the same month last year.
Mike Hawes, SMMT Chief Executive, expressed concern over the declining demand for electric vans: "A return to growth for Britain’s new van sector is encouraging as the market continues its post-Covid recovery... However, such a significant and sustained drop in demand for electric vans is of deep concern given the ambitious and mandated sales targets required this year and beyond."
Year-to-date figures show a positive trend with the van market up by 2.7%, totalling 218,884 units across all segments. However, BEV volumes have decreased by -9.5%, reducing their market share to just 5.1%. This is significantly below the zero-emission vehicle mandate target of 10%, despite more manufacturers offering zero-emission models.
The decline in electric van uptake highlights the need for increased operator confidence through long-term fiscal incentives and expanded charging infrastructure suitable for vans.
Impact on UK Economy
The automotive industry plays a crucial role in the UK economy with a turnover of £93 billion and £22 billion value added annually. It invests around £4 billion each year in research and development (R&D) and employs approximately 198,000 people directly in manufacturing roles.
This sector also supports jobs across various other industries such as advertising, chemicals, finance, logistics, and steel.
SMMT's Role
The Society of Motor Manufacturers and Traders (SMMT) represents one of the largest trade associations in the UK automotive industry. The sector contributes significantly to economic growth and net-zero goals while being integral to global trade.
SMMT provides valuable insights into industry trends through publications like its Motor Industry Facts report available on their website.
The UK automotive sector accounts for about 12% of total UK exports of goods with vehicles manufactured domestically traded globally generating £115 billion in total automotive imports and exports.
The industry encompasses almost every type of vehicle production from cars to specialist off-highway vehicles supported by over 2,500 component providers employing some of the world's most skilled engineers.
For further information or media inquiries regarding SMMT's activities or industry data contact Paul Mauerhoff at [email protected] or James Boley at [email protected] among others listed on their official site.
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