UK new light commercial vehicle (LCV) registrations rose by a modest 1.1% in February, with 14,641 vans, pickups and 4x4s joining the road, according to the latest figures published today by the Society of Motor Manufacturers and Traders (SMMT). This was the second increase in three months following a 12-month stretch of decline, but February remains a small volume month, coming ahead of the March plate-change and typically accounting for just some 5% of annual volumes.1
Growth in the month was driven primarily by the large van segment, with registrations of vans weighing 2.5–3.5 tonnes rising 7.6% to 10,719 units, accounting for nearly three quarters (73.2%) of all new vans registered during the month. Demand for vans in the 2.0–2.5 tonne segment also improved, up 16.9% to 2,477 units, while 4×4 registrations increased 64.0% to 269 units.
These gains were offset, however, by continued weakness in the pickup market, which fell -54.9% to just 813 units, reflecting the ongoing impact of last year’s fiscal changes to benefit-in-kind and capital allowance treatment of double cab pickups. Demand for smaller vans also declined, with the market for those weighing under 2.0 tonnes down -15.0% to 363 units.
The shift to electrification continued to make progress as battery electric van registrations surged 42.2% to 2,009 units, pushing their market share to 13.5% but still well short of the 24% required by the zero?emission vehicle mandate this year.2 Diesel continued to dominate, accounting for almost eight-in-10 registrations, highlighting the scale of the challenge facing manufacturers and operators in transitioning to zero emission fleets amid infrastructure, cost and operational constraints.
In the first two months of the year, total LCV registrations stand at 32,203 units, down -3.9% compared with the same period last year. Despite demand for BEVs rising by a third (33.9%) to 3,853 units, their 11.8% share of the market is still less than half the mandated target. Recent announcements such as the extension of funding for the Plug-in Van Grant until 2027, the new Depot Charging Scheme and proposed changes to planning rules for private charger installations will all help the transition, but natural market demand remains so far behind regulatory ambition that the sector continues to call for government to bring forward a review of the transition, and the regulation governing it.
Mike Hawes, SMMT Chief Executive, said, “The van market’s modest growth in February is welcome, as is another month of rising demand for electric models. Pickup registrations, however, continue to lag given last year’s fiscal changes, while EV uptake remains far below the level required by regulation, despite more than half of all models being available as EVs and with massive discounts on their sale. That is unsustainable and therefore requires a wholesale review of the transition to ensure we have a framework that is realistic, deliverable and affordable.”
