August van registration swell shadowed by looming semi-conductor shortage

Typically a quiet month like the car market, August 2021 was the second-best on record, with 20,582 new van registrations, Society of Motor Manufacturers and Traders figures show. In the year to date the uptake of new vans is up 2.6 per cent on the pre-pandemic five-year average (although down -4.0 per cent on the same period in 2019). Despite a drop in sales in certain sectors of the light commercial vehicle market, vans have largely maintained good figures throughout the Covid-19 pandemic, an effect of booming last-mile delivery and mobile services. Several segments are currently enjoying the market entrance of new zero-emission and specialist models. Despite this buoyancy, the SMMT warned that the semi-conductor shortage is looming over the sector and is already affecting production and throttling new van sales.

Light vans weighing 2 tonnes or less saw a decline of -23.3 per cent, the SMMT said, but all other classes saw growth. Heavier vans weighing more than 2.5 tonnes, the lion’s share of the market, saw a 7.0 per cent increase in overall registrations as demand for online shopping and construction remained robust and pandemic restrictions continued to ease across the UK. Notable but atypical growth was seen in the 4×4 market, up 522.6 per cent as a result of new models entering the market in the traditionally small segment.

(Source: SMMT)

Year to date registrations remain -4.0 per cent down on the record-setting 2019 levels, but the SMMT is still referring to 2021 as a bumper year for van uptake. Nevertheless, the semi-conductor shortage has seen UK CV manufacturing throttled -21.3 per cent on the pre-pandemic average – as well as overseas.

Mike Hawes, SMMT chief executive, said: “This year has proved to be one of the best ever for new van registrations, buoyed by strong demand and growing confidence as the economy continues to open up. The impact of the semi-conductor shortage on manufacturing is affecting commercial vehicle production, however, even if it is not immediately apparent in the registration figures. With even more new zero emission models coming to market, the choices available for fleet renewal are increasing rapidly, which can play a significant role in helping the UK meet its ambitious emissions reduction targets.”