Auto Finance Sponsored by Auto Finance News UK van market edges up in February but electric transition remains off target Published: 9th March 2026 Share The UK’s light commercial vehicle (LCV) market recorded modest growth in February, rising 1.1% to 14,641 registrations, according to the latest data from the Society of Motor Manufacturers and Traders (SMMT). While the increase marks a second monthly gain in the past three months, it does little to mask the broader challenges facing the sector – particularly the slow pace of electrification. Source: SMMT February is traditionally a quieter month for van sales, accounting for only around 5% of annual volumes as many buyers wait for March’s new numberplate. Even so, the latest figures point to a fragile recovery following a prolonged period of decline. The overall uplift was driven primarily by strong demand for larger vans. Registrations of vehicles in the 2.5–3.5 tonne category rose 7.6% to 10,719 units, representing nearly three quarters (73.2%) of the market. Vans weighing between 2.0 and 2.5 tonnes also performed well, up 16.9% to 2,477 units. Elsewhere, 4×4 registrations surged by 64.0%, albeit from a low base, reaching 269 units. However, these gains were offset by continued weakness in other segments. Pickup registrations plummeted by 54.9% to just 813 units, continuing to feel the impact of last year’s tax changes affecting double cab pickups. Smaller vans under 2.0 tonnes also saw declining demand, down 15.0% to 363 units. Source: SMMT Battery electric van uptake showed strong growth, rising 42.2% to 2,009 units and capturing a 13.5% share of the market. Despite this progress, the figure remains well below the 24% share required under the Zero Emission Vehicle (ZEV) mandate for 2026. Diesel vehicles continue to dominate the sector, accounting for nearly 80% of registrations, underlining the scale of the transition challenge. Operators continue to face barriers including higher upfront costs, limited charging infrastructure, and operational constraints. Across the first two months of the year, total LCV registrations reached 32,203 units – down 3.9% compared with the same period last year. While electric van demand has risen by 33.9% to 3,853 units, their market share stands at just 11.8%, less than half the mandated level. Source: SMMT Recent policy measures, including the extension of the Plug-in Van Grant to 2027, the introduction of a Depot Charging Scheme, and proposed planning reforms to ease charger installation, are expected to support adoption. However, industry leaders warn that demand is still falling significantly short of regulatory expectations. SMMT Chief Executive Mike Hawes said the modest growth in February was encouraging but stressed that the transition to zero-emission vans remains out of sync with market realities. “The van market’s modest growth in February is welcome, as is another month of rising demand for electric models,” he said. “Pickup registrations, however, continue to lag given last year’s fiscal changes, while EV uptake remains far below the level required by regulation.” He added that despite a growing range of electric van models and substantial manufacturer discounts, the current pace of adoption is “unsustainable,” calling for a comprehensive review of the transition framework. Lisa Laverick Editor - Finance Connect Sign up to our newsletter Featured Stories NewsUK businesses shift to ‘usership’ model for fleet mobility, says Europcar Corporate Member NewsAutotrader tops 1m leads as Buying Signals platform evolves NewsAFIA pledges higher industry standards following ASIC motor finance review Auto Finance