Van Market Experiences Sixth Consecutive Monthly Decline As Electric Van Uptake Grows

Published: Thursday, June 5, 2025, 20:02 [IST]

In May 2025, the UK's light commercial vehicle (LCV) market experienced an 11.8% decline, marking the sixth consecutive month of reduced registrations. According to the Society of Motor Manufacturers and Traders (SMMT), only 22,796 vans, 4x4s, and pick-ups were registered. This represents the lowest performance for May since 2022, largely due to weak business confidence affecting fleet investments.

Demand for new vans decreased across all sizes. The largest models saw a 14% drop to 14,652 units. Medium-sized vans fell by 9.2% to 4,065 units, while the smallest vans declined by 7.8% to 673 units. However, the new 4x4 segment grew by 36.9%, reaching 716 units.

Despite a significant rise in electric van registrations by 50%, their market share remains at just half of the mandated levels. In May, battery electric vans (BEVs) reached 1,731 units, marking seven consecutive months of growth. Yet, zero-emission vans accounted for only 7.6% of the market in May and 8.2% year-to-date.

The Plug-in Van Grant continues to support buyers, but rapid investment in charging infrastructure is crucial for further decarbonisation. The industry calls for improved depot grid connections and efficient local planning policies to facilitate fleet transitions.

The pickup segment saw a decline of 12.7%, with registrations falling to 2,690 units due to recent fiscal measures treating double-cabs as cars for tax purposes. This change increases costs for businesses in sectors like farming and construction that rely on these vehicles.

SMMT urges the government to delay this tax change by at least a year to allow businesses time to adjust. Without this postponement, more polluting vehicles may remain on roads longer, counteracting efforts to reduce emissions.

Industry's Call for Government Support

SMMT Chief Executive Mike Hawes stated that six months of declining demand reflects a challenging economic environment and weak business confidence. He emphasised that punitive taxes on double-cabs hinder growth and that fleet renewal with cleaner models should be encouraged.

"Six months of declining new van demand reflects a tough economic environment and weak business confidence – and that won’t be helped by punitive taxes such as on double-cabs that will only restrict wider growth," said Hawes.

The Role of SMMT in the UK Automotive Industry

The Society of Motor Manufacturers and Traders (SMMT) is a key trade association representing the UK automotive industry. The sector contributes significantly to the UK economy with £93 billion turnover and £22 billion value added annually.

The automotive industry employs around 198,000 people directly in manufacturing and supports approximately 813,000 jobs across related sectors like advertising and logistics. It accounts for nearly 13.9% of total UK exports with over £115 billion generated from automotive trade.

The UK produces various vehicles including cars, vans, taxis, trucks, buses, coaches, specialist vehicles supported by over 2,500 component providers.

The automotive sector also plays a vital role in other industries such as chemicals and finance while maintaining vibrant aftermarket services.