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UK Van Market Achieves Best First Half Since 2021 Amidst June Decline
The UK new light commercial vehicle (LCV) market saw a decline of 4.5% in June, with 33,066 units sold, ending a 17-month growth streak. This information comes from the latest figures released by the Society of Motor Manufacturers and Traders (SMMT). Despite this drop, the market has shown resilience in the first half of 2024, with registrations up by 4.5%, totalling 177,620 new vans, pickups, and 4x4s.
Demand across various segments showed mixed results. Registrations for vans weighing more than 2.0 to 2.5 tonnes increased by 14.0% to 7,169 units. Meanwhile, those weighing less than or equal to 2.0 tonnes surged by 58.7% to 806 units. However, vehicles weighing above 2.5 tonnes up to 3.5 tonnes, which make up two-thirds of the market, fell by 8.3% to 21,677 units.
Pick-up and 4x4 registrations also experienced declines in June, dropping by 18.1% and 20.3%, respectively. The overall decline in June is partly due to an inflated comparison with June 2023, which saw the best performance in four years as the industry met pent-up demand following Covid-19 disruptions.
Battery electric van (BEV) deliveries fell for the third month this year, down by 16.8% compared to June last year, reaching only 1,476 units. Consequently, BEVs now account for just 4.7% of all new light van registrations so far this year, down from 5.2% during the same period last year.
This downward trend is concerning given that manufacturers are required to ensure zero-emission vehicles make up at least 10% of their new van registrations this year.
Market Outlook and Stakeholder Actions
Manufacturers are striving to increase the number of zero-emission models on UK roads through new launches and attractive offers aimed at all types of drivers. However, achieving a successful market transition requires collective effort from all stakeholders.
Mike Hawes, SMMT Chief Executive, stated: "The best first half of a year since 2021 is great news for a market so intrinsic to economic growth, but this optimism will only continue if action is taken to re-energise zero emission van demand."
"A new government provides an opportunity to bolster the market with a strategy to grow the UK’s van-specific charging network at pace and maintain essential fiscal incentives to keep this vital market on track," Hawes added.
Historical Context and Future Implications
The previous record-equalling growth run lasted from February 2010 to June 2011. The current situation highlights the need for continued support and strategic planning to sustain market growth and meet net-zero ambitions.
The first six months of this year have been the best since January-June 2021 when LCV registrations reached 191,513 units.
The decline in BEV registrations underscores an urgent need for maintaining fiscal incentives and expanding van-suitable charge points across the country.
In summary, while there are challenges ahead for the LCV market in terms of zero-emission vehicle uptake and infrastructure development, strategic actions can help maintain momentum and achieve long-term goals.
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