Demand for pick-ups surges ahead of company car tax change

Registrations of new pick-ups increased by a massive 40.6% in March, as canny fleets adopted vehicles ahead of new company car tax rules taking effect.

There were 8,107 new pick-ups registered in the month, according to new figures from the Society of Motor Manufacturers and Traders, with vehicles ordered from Sunday (April 6) now subject to company car tax.

The Government announced in the Autumn Budget that double cab pick-up trucks would be treated as company cars from this month. 

Transitional benefit-in-kind (BIK) tax apply for employers that have purchased, leased, or ordered a double cab pick-up before April 6, irrespective of when it is delivered. 

The SMMT says that the fiscal measures heap additional costs on businesses in sectors that make an important contribution to national and local economic growth – from automotive and farming to construction, utilities and sole traders – causing many to hold off investing, keeping more polluting vehicles on the road and, counterproductively, reducing tax revenues. 

Sue Robinson, chief executive of the National Franchised Dealers Association (NFDA), said: “The significant increase in pick-up registrations is not surprising, with March being the final month consumers could purchase a pick-up and still benefit from the lower commercial benefit-in-kind taxation.”

UK demand for new vans shrinks for fourth month running

Overall, the sales figures for March from the SMMT show that UK deliveries of new light commercial vehicles (LCVs) dipped by 3.2% in March with 51,221 vans, 4x4s and pick-ups registered. 

The decline, while compared with a particularly strong March last year, was the fourth consecutive monthly fall in new LCV market activity as weak business confidence continues to hold back investment in the very latest models.

Lower volumes were driven by 10% fewer registrations of the largest vans which, at 32,025 units, still remain the most popular segment with 62.5% of the overall market. 

Deliveries of medium sized vans and 4x4s also fell, by 8.5% and 18.9% to 8,180 units and 1,324 units respectively. 

Positively, rising demand for smaller vans continued for the 13th successive month, up 60.8% to 1,585 units – now claiming 3.1% of the market. 

Battery electric vans

Demand for new battery electric vans (BEVs) weighing up to 4.25 tonnes grew for the sixth month in a row, up 40.3% to 4,215 units – a new monthly high. 

The very latest, greenest models have taken 8.3% of the market in the first three months of 2025, up 2.8 percentage points on the same period last year.

Mike Hawes, SMMT chief executive, said: “Vans, pick-ups and 4x4s are critical for business operations across the UK so four months of falling investment is concerning and reflects weak confidence, with further constraints set to impact the pick-up segment. 

“It is positive, however, that electric uptake continues to rise thanks to growing model choice.

“Even so, with demand still well below 2025 ambitions, suitably bold plans for infrastructure rollout and workable regulation are needed to grow operator confidence and the investment that is needed.”