New van market decline continues | Electric van target 'to be missed'

The new van market recorded its eighth consecutive month of decline, and the weakest July since 2022, according to the latest sales figures from the Society of Motor Manufacturers and Traders (SMMT).

Registrations of new light commercial vehicles (LCVs) fell by 5.1% in July, with 24,433 vans, 4x4s, pickups and taxis sold.

As a result, the latest 2025 outlook has been revised downwards, with the market now expected to decline by more than 30,000 units, or 8.7%, to 321,000 units. 

The battery electric vehicle (BEV) share of LCV registrations up to 3.5 tonnes has also been adjusted downwards for 2025, to 8.6%, with a marginal increase to 13.7% expected in 2026 against a mandated target of 24% in that year.

Demand fell across most segments in July, with uptake of the smallest vans recording the sharpest drop, down 20.6% to 738 units, while deliveries of the largest models fell 4.6% to 16,040 units.

Following April’s tax change to treat double-cabs as cars for benefit-in-kind and capital allowance purposes, the pickup segment declined for a third consecutive month, down 17.3% to 1,897 units.

Growth, however, was recorded in registrations of mid-sized vans, up 2.5% to 4,138 units, and 4x4s, up 0.5% to 620 units.

Mike Hawes, SMMT chief executive, said: “Eight months of LCV market decline underlines the ongoing economic pressures facing businesses, yet the sector remains steadfast in its commitment to decarbonise.”

Deliveries of battery electric vehicles (BEVs) rose by 72.6% to 2,442 in July, delivering eight months of continuous growth.

In the year to date, however, BEVs represent just 8.8% of the overall LCV market – somewhat short of the 16% demanded from the zero emission vehicle (ZEV) mandate. 

Expediting depot grid connections, ensuring efficient implementation of local planning and promptly delivering LCV-suitable infrastructure, are all essential to encourage investment and accelerate the transition, says the SMMT.

Hawes said: “Manufacturers continue to invest in delivering a diverse range of zero emission vans to suit every use case, and it’s encouraging to see uptake growing – but to meet mandated targets, it must grow faster.

“Accelerating infrastructure rollout, streamlining planning processes and providing targeted support for fleet operators are essential to drive progress and keep the UK at the forefront of road transport decarbonisation.”