Five months of falling demand for new vans in the UK

UK demand for new light commercial vehicles (LCVs) fell sharply in April, marking the fifth consecutive monthly decline and the worst April performance since the pandemic-hit year of 2020, according to new data released today by the Society of Motor Manufacturers and Traders (SMMT).

Registrations of new LCVs – including vans, 4x4s and pick-ups – dropped by 14.9% year-on-year to 20,332 units, underscoring a troubling trend as weakening business confidence continues to weigh heavily on fleet investment. The latest figures highlight growing concerns over economic instability and recent changes to vehicle taxation that may further deter companies from upgrading to newer, cleaner models.

The largest fall was seen in large vans, which plunged 22.9% to 12,113 units, though they still made up nearly 60% of all LCVs registered. Medium and small vans also declined, by 5.8% and 5.5%, respectively. However, there were some bright spots: 4×4 registrations rose 19.2%, and pick-up sales increased 10.2% for a second straight month – a trend SMMT attributes to businesses rushing to complete orders ahead of a controversial tax change.

The new fiscal policy, which reclassifies double-cab pickups as cars for benefit-in-kind and capital allowances, is expected to raise operating costs for key sectors like construction, agriculture, and utilities. Industry leaders warn the move could have unintended environmental and financial consequences by discouraging fleet renewal and slowing the adoption of cleaner vehicles.

The tax change risks keeping more polluting vehicles on the road while paradoxically reducing tax revenues, SMMT cautioned, urging the government to delay implementation by at least one year.

Despite the broader downturn, electric vans offered a glimmer of hope. Registrations of battery electric vans (BEVs) surged 77.5% in April to 1,686 units, now comprising 8.3% of the market – up from 4.0% a year earlier. This momentum reflects major investments by manufacturers, with nearly 40 electric models now available to UK buyers.

Still, the road to net zero remains steep. SMMT forecasts BEV market share will end 2025 at just 9.1%, far short of the 16% mandate required this year and 24% in 2026. The organisation is calling for urgent infrastructure upgrades, especially for depot charging, where businesses face wait times of up to 15 years for grid connections.

“Switching must have clear commercial benefits, so the sector needs bold and assertive action if ambitious mandate targets are to be met. Preferential treatment for grid connections, more affordable energy and consistent local planning – all are needed to make the case for going electric unarguable.”

SMMT’s updated market outlook projects a 4.3% drop in total LCV registrations in 2025 to 337,000 units, nearly 11,000 fewer than forecast in January. Unless structural and policy obstacles are addressed soon, the UK risks falling short of both its environmental targets and its industrial potential.