New van registrations fall for fifth consecutive month as supply squeeze continues

UK light commercial vehicle (LCV) registrations recorded their fifth consecutive month of decline in May, falling -25.1 per cent to 22,000 units, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).

Although the fall is amplified in comparison with last year, which saw the highest May registrations total in history, the market was still some -21.5 per cent below the pre-pandemic average as component shortages restricted production and therefore delivery.

All segments saw a fall in volumes during the month, although larger vans weighing more than 2.5 tonnes were less impacted, with a decline of -19.4 per cent. Medium vans weighing greater than 2.0 to 2.5 tonnes declined by -33.4 per cent. The largest fall was recorded in the 4×4 sector (-80.7 per cent), although this is a low volume segment subject to volatility.

Some 869 battery electric vans (BEV) were registered in the month – 276 more than last May. BEV registrations for the year to date are 62.7 per cent higher than last year, due in part down to significant large fleet orders delivered earlier in the year. As a result, over the year to date, overall BEV market share has more than doubled to 5.2 per cent – testament to the growing choice provided by manufacturers, with one in three models now available as a plug-in.

However, the sector lags behind the new car market, where, in the year to date, BEVs comprise 14.0 per cent of new registrations. With pure petrol and diesel cars and vans facing the same 2030 end of sale date, the need for a ‘van plan’ to encourage operators to make the switch by providing long term incentives and dedicated van charging infrastructure is readily apparent. Electric vans comprise just one in 20 new registrations and account for around one in 180 in use. This is borne out by an SMMT survey released last month that revealed 58 per cent of existing van owners would be encouraged to switch to an EV if there were more public charging points, while 57 per cent said that government incentives such as reduced tax or grants towards purchase would help them to transition to electric.

Mike Hawes, SMMT chief executive, said: “Global supply chain shortages continue to hold back the market following last May’s post-pandemic bounce back. Manufacturers have, however, worked hard to get the latest zero-emission vans to customers, more than doubling their market share. However, this is still an emerging market and everything must be done to encourage drivers to switch to zero emission commercial vehicles if we are to achieve our net zero goals. The industry will tackle the supply chain challenges undermining delivery but we urgently need a van plan to address the paucity of dedicated commercial vehicle infrastructure, as well as incentives to boost the sector’s electric transition.”