Third consecutive month of decline for new van registrations

Demand for new light commercial vehicles (LCVs) fell for the third consecutive month in February, according to new figures from the Society of Motor Manufacturers and Traders (SMMT).  

New van registrations were down 19.3% in the month, with 14,476 LCVs registered – February’s lowest result since 2020.

With weak business confidence ahead of upcoming tax changes, the fall in demand impacted all but one segment, with registrations of smaller vans weighing under 2.0 tonnes showing the only increase, up 55.3% to 427 units – representing 2.9% of the market.

Volumes of medium vans were down by a third (33%) to 2,119 units, while larger vans, weighing greater than 2.5 to 3.5 tonnes, dropped by 19% to 9,962 units. 

The smaller segment market – 4x4s and pick-ups – also recorded declines, down 45.7% and 4.8% respectively.

Electric van uptake

Uptake of battery electric vans weighing up to 4.25 tonnes, however, grew for the fifth consecutive month, up 55.1% to 1,413 units, with market share rising to 9.7% – up nearly five percentage points on last year. 

More than 30 zero emission van models are currently available, providing operators with increasing choice, and the industry has welcomed confirmation of the continuation of the still essential plug-in van grant.  

Mandating faster charge point rollout – including van-specific charging infrastructure – will be crucial, however, to bolstering confidence, whilst reintroducing discounted VED on ZEVs is also necessary to help raise demand to levels required under market regulation, says the SMMT.

With the industry charged to deliver a 16% zero emission new van market this year, urgent action is needed to encourage operators to switch, along with workable regulation that delivers growth and decarbonisation, it argues. 

Mike Hawes, SMMT chief executive, explained: “Against an increasingly difficult economic backdrop, van manufacturers have shown resilience, but the decline was perhaps inevitable after two years of strong performance. 

“Even in a contracting market, however, zero emission uptake is positive but still struggles to match the ambition of regulation.” 

He concluded: “While the ongoing plug-in van grant provides a lifeline, we still need support to bolster operator confidence, boost demand and deliver decarbonisation. 

“Industry has committed billions to this vital transition and the mandate review must deliver workable measures that enable that commitment to deliver our shared ambition.”