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Falling Demand For New Vans Continues In April 2025 Amid Economic Challenges
Demand for new light commercial vehicles (LCVs) in the UK decreased by 14.9% in April, marking the fifth consecutive month of decline. According to the Society of Motor Manufacturers and Traders (SMMT), 20,332 vans, 4x4s, and pick-ups were registered. This represents the worst April performance since 2020, partly due to Easter timing and traditionally low volumes.
April saw a significant drop in registrations for large vans, with a decrease of 22.9%, totalling 12,113 units. Despite this decline, large vans still accounted for nearly 60% of new LCVs. Medium and small van deliveries also fell by 5.8% and 5.5%, respectively, amounting to 4,344 and 571 units.
In contrast to the overall decline, electric van registrations surged by 77.5%, reaching 1,686 units in April. This growth marks the seventh consecutive month of increased demand for battery electric vans (BEVs), now representing 8.3% of the market share. However, this is still below the mandated target of 16% for 2025.
The rise in electric van uptake is attributed to significant investments by manufacturers, with nearly 40 different models available in the UK market. Despite this progress, fleet operators face challenges due to lengthy grid connection procedures that can delay depot charging connections by up to 15 years.
Pick-up registrations increased by 10.2% to reach 2,740 units in April. This growth likely reflects orders placed before a new tax change treating double-cabs as cars for benefit-in-kind purposes took effect. The tax change could deter businesses from placing new orders, potentially keeping older vehicles on the road longer.
SMMT has urged the government to delay this tax change for at least a year to allow businesses more time to adapt. The organisation warns that additional costs from this change could impact sectors like farming and construction.
Challenges Facing Decarbonisation Efforts
The automotive industry remains committed to decarbonisation but faces hurdles such as inadequate public charging infrastructure and inconsistent local planning policies. Accelerating the transition requires more affordable energy solutions and prioritised grid connections for transport depots.
SMMT Chief Executive Mike Hawes stated that weak business confidence and economic challenges discourage fleet upgrades to zero-emission technology. He emphasised that switching must offer clear commercial benefits to meet ambitious mandate targets.
Future Market Outlook
SMMT's latest forecast predicts a further decline in the new LCV market by 4.3% in 2025, down to approximately 337,000 units due to economic challenges and changes in vehicle taxation. The BEV share is expected to reach only 9.1% by year-end before increasing slightly to 13.3% in 2026.
The Society of Motor Manufacturers and Traders (SMMT) plays a crucial role in representing the UK's automotive industry, which contributes significantly to the economy with £93 billion turnover and £22 billion value added annually.
The UK automotive sector employs around one million people across manufacturing and related industries, with wages above the national average outside London and South-East England.
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