Electric van demand surges as UK LCV market shrinks again

UK demand for new light commercial vehicles (LCVs) fell sharply in August, with registrations dropping 13.3% year-on-year to 14,365 units, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT). The decline marks yet another month of contraction, continuing a trend that has seen volumes fall every month this year.

Despite the downturn, demand for battery electric vans (BEVs) bucked the trend, surging by an impressive 109.5% compared with August 2024. A total of 1,902 BEVs were registered last month, pushing their market share to a record 13.0%.

However, SMMT warned that while BEV uptake is growing rapidly, it still lags far behind the 16% share mandated for 2025, with the year-to-date share currently sitting at just 9.1%.

The wider LCV market struggled across all segments:

Large vans (the biggest category, making up 72.4% of the market) saw registrations fall 11.5% to 10,398 units.
Medium vans declined 14.0% to 2,383 units.
Pickups suffered the steepest drop, plunging 25.8% to just 1,040 units, hit by recent tax changes reclassifying many double-cab pickups as cars for benefit-in-kind and capital allowance purposes.
Small vans and 4x4s also fell, down 17.6% and 13.9% respectively.

August is traditionally the lowest-volume month of the year ahead of the September “new plate” change, but this latest decline represents 2,210 fewer registrations than the same month last year and even undershot February’s pre-plate total by 111 units.

With over 40 electric van models now available in the UK, manufacturers are ramping up investment to meet government decarbonisation targets. BEV registrations for the year so far have risen 59.9%, a stark contrast to the 11.4% overall decline in the LCV market.

Yet, the industry faces significant hurdles in scaling adoption. The SMMT highlighted the importance of affordable transition schemes and charging infrastructure to encourage small businesses and fleet operators to switch. Although the Plug-in Van Grant and Depot Charging Scheme remain in place, operators continue to face challenges, including public charging gaps and grid connection delays of up to 15 years for some depots.

SMMT Chief Executive Mike Hawes said: “August is conventionally a low-volume month for the new LCV market, so while the continued decline is disappointing, the focus is on September to deliver the fleet investment and growth that would reflect a healthy business environment.

“A thriving market is also essential for decarbonisation, given the vast choice of electric van models already available to suit almost every need. Manufacturers need greater volumes to ensure investment in innovation continues unabated.”

With September – typically the second-busiest month of the year – approaching, all eyes are on whether operator confidence will rebound. Without a significant uplift, the industry risks falling short of the government’s 2025 zero-emission sales targets.