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Van Market Sustains Growth But Electric Uptake Must Rise Faster
The UK light commercial vehicle (LCV) market has experienced its 17th consecutive month of growth, with registrations rising by 1.9% in May 2024 to reach 25,853 units. This marks the strongest performance for May since 2021, according to the Society of Motor Manufacturers and Traders (SMMT).
Midweight vans, weighing between 2.0t and 2.5t, saw an 8.1% increase in uptake, driving the overall growth. Light vans, weighing less than 2.0t, recorded a significant proportional growth of 55.7%, although this segment is known for its volatility due to low volumes. Conversely, the 4x4 market declined by 15.0%, while pick-ups grew by 4.1%.
Large vans, weighing between 2.5t and 3.5t, continue to dominate the market, comprising 65.9% of total registrations despite a slight decline of 0.8%. Overall, all vehicle segments have seen an increase in registrations year-to-date.
Battery electric van (BEV) registrations rose by 3.5% in May, achieving a market share of 4.2%, nearly unchanged from last year's 4.1%. However, the year-to-date BEV uptake has fallen by 2.1%, resulting in a market share of 4.8%, down from 5.2%. This is below the Vehicle Emissions Trading Scheme target of 10% for each brand this year.
Mike Hawes, SMMT Chief Executive, highlighted the importance of converting more operators to electric vehicles to meet net zero targets. He emphasized that with over 25 zero emission models available and substantial investments from manufacturers, government support through fiscal incentives and charging infrastructure is crucial.
The UK automotive industry plays a vital role in the economy, contributing £78 billion in turnover and £16 billion in value added annually. The sector employs over 208,000 people in manufacturing and around 800,000 across the wider industry.
The industry also supports other sectors such as advertising, finance, and logistics, with wages approximately 14% higher than the UK average. The sector's global trade is significant, with exports worth £94 billion accounting for 10% of all UK goods exports.
Future Outlook
As Britain approaches its next election, all political parties are urged to implement measures that support the transition to zero emission vehicles. Sustaining fiscal incentives for electric and hydrogen vans and ensuring adequate charging infrastructure are essential steps towards achieving net zero goals.
For further details on the UK automotive industry and its impact, visit SMMT's Motor Industry Facts publication at www.smmt.co.uk/reports/smmt-motor-industry-facts/.
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