UK van market continues to grow in August

The UK new light commercial vehicle (LCV) market grew for the eighth consecutive month in August, rising 5.0 per cent to 16,303 units, according to the latest figures published by the Society of Motor Manufacturers and Traders (SMMT), during what is traditionally a smaller volume month ahead of the September plate change.

The market for medium-sized vans, those weighing greater than 2.0 to 2.5 tonnes, drove growth in the month, surging 72.1 per cent to 2,718 units with 4x4s and pickups also proving popular, demand rising 163.9 per cent and 22.3 per cent respectively to a combined 1,693 units. Registrations of the largest LCVs, those weighing greater than 2.5 to 3.5 tonnes, meanwhile, decreased, falling -5.1 per cent to 11,549 units, although they still represented the majority (70.8 per cent) of all new van deliveries. Registrations of vans weighing up to and including 2.0 tonnes also fell, down -30.4 per cent to 343 units.

Battery electric van registrations grew 18.9 per cent to 1,122 units to take a 6.9 per cent market share in August. 11,414 zero emission electric vans have been registered so far this year, up 16.4 per cent on the same period in 2022 as more businesses switch on to the benefits they offer in terms of competitive running costs and zero emissions at the tailpipe.

Mike Hawes, SMMT Chief Executive, said: “Another month of growth for new van sales is good news and a sign that the market is well on the way to recovery. That more operators are choosing electric models is also positive, given the massive investments made by van makers into these vehicles, including at plants in the UK.

“Diesel models, however, still make up more than nine in ten registrations, proof of how far the market must move if it is to decarbonise. With an end of sale dates and a ZEV mandate looming, we must pull every lever to deliver the transition.”

NFDA calls for financial incentives

Commenting on the figures, Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA), which represents franchised car and commercial vehicle retailers in the UK, said: “It is positive news to see eight consecutive months of light commercial market growth, as business confidence continues and buyers update their LCVs to ensure they own Euro-6 vehicles and are compliant with the increasing number of Low Emission Zones around the UK”

The heavier sectors of LCVs have improved substantially, with 2.0-2.5t sized vans rising from 1,579 units to 2,718 units, a 227.4 per cent increase. The heavier, and most popular sized vans (2.5-3.5t) accounting for nearly 71 per cent of the market, decreased from 12,176 units to 11,549 units, a -5.1 per cent fall.

Although a smaller market, 4×4 experienced strong growth year-on-year, with 256 units on the road compared to last year’s 97 units, a 163.9 per cent increase.

August saw an increase in the number of battery electric commercials registered, up 18.9 per cent to 1,122 units. Whilst the volume for EV vans has increased to 11,414 units this year, it still only represents 5.4 per cent of the market, a 0.1 per cent fall from this time last year.

Sue Robinson added: “While it is encouraging to see growth in BEV light commercials for August, it is still disappointing to see the overall market share of 5.4 per cent year-to-date remains 0.1 per cent lower than this point last year. It is time Government realized that it is a significant cost to purchase any new light commercial, particularly an EV van, when there are proven and reliable diesel options available at far lower prices. Running an LCV is a business decision, and one which will need financial incentives from Government to initiate a more radical shift in consumer uptake towards electric light commercial.”