New van market falls for the sixth month running

The UK’s new light commercial vehicle (LCV) declined by 11.8% in May with 22,796 vans, 4x4s and pick-ups joining the road, according to new figures the Society of Motor Manufacturers and Traders (SMMT).

It was the lowest May performance since 2022 and rounds off the sixth consecutive month of decline.

The SMMT blames weak business confidence for holding back fleet investment.

Demand shrank for new vans of all sizes, with the largest models down 14% to 14,652 units, while deliveries of medium-sized vans fell by 9.2% to 4,065 units and the smallest vans by 7.8% to 673.

Only the new 4x4 segment saw growth, up 36.9% to 716 units. The pick-up segment, meanwhile, declined by 12.7% to 2,690 registrations.

The decline in the pick-up market follows April’s introduction of fiscal measures to treat double-cabs as company cars for benefit-in-kind (BIK) and capital allowance purposes.

The tax change, says the SMMT, is heaping additional costs on businesses in key sectors – such as farming, construction, utilities and sole trading – which depend on these operationally critical vehicles.

Discouraging operators from placing new orders will keep more polluting vehicles on the road for longer and, counterproductively, reduce tax revenues given lower volumes, it added.

SMMT continues to urge Government to postpone the change for at least one year to give industry and customers more time to prepare, especially given new lower and zero emitting vehicles entering the market.

Mike Hawes, SMMT chief executive, said: “Six months of declining new van demand reflects a tough economic environment and weak business confidence – and that won’t be helped by punitive taxes such as on double-cabs that will only restrict wider growth.

“Fleet renewal with the latest, cleanest models must be encouraged so it’s positive that zero emission van uptake is rising, but with market share at just half the mandated level, it’s clear we need action to drive that uptake faster.

“Accelerating LCV-centric and affordable charge point rollout is the bold next step that van operators and manufacturers need now.”

Electric van demand grows

Demand for battery electric vans continues to grow, up 50% to 1,731 units in May – the seventh successive month of rising demand.

However, they represented just 7.6% of the overall market in May and 8.2% in the year to date – half the 16% share mandated for 2025.