UK van market grows for second month, EV uptake remains below target

The UK light commercial vehicle (LCV) market recorded a second successive month of growth in May, with registrations rising 3.6% year-on-year to 23,620 units, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).

The performance marks the first time since 2024 that the market has achieved back-to-back monthly growth, driven largely by strong demand for large vans.

Registrations of large vans increased by 18.6% to 17,380 units, accounting for almost three-quarters (73.6%) of all new LCV registrations during the month, up from 64.3% a year earlier. Demand for 4x4s also rose, increasing 16.2% to 832 units.

However, growth was uneven across the market. Medium van registrations fell 7.5% to 3,762 units, while small van volumes declined by 24.5% to just 508 units.

Pickup registrations continued their prolonged downturn, falling 57.7% to 1,138 units. The segment has now recorded eight consecutive months of decline and represented just 4.8% of the overall market in May, compared with 11.8% during the same month last year.

The SMMT attributed the weakness largely to changes introduced in April 2025 that reclassified double-cab pickups as cars for Benefit-in-Kind taxation purposes. The industry has continued to urge government to reverse the measure, arguing that it is discouraging investment in newer, lower-emission vehicles among key sectors such as agriculture and construction.

Battery electric van (BEV) registrations continued to grow strongly, rising 35.5% year-on-year to 2,345 units. Market share increased from 7.6% in May 2025 to 9.8% this year.

Despite the improvement, electric van adoption remains significantly below the levels required to meet regulatory targets. BEVs accounted for 9.8% of registrations in May, less than half of the 24% market share mandated for 2026. Year-to-date, electric vans represent 9.5% of all new van registrations, below even the 10% target set for 2024.

Manufacturers have expanded the range of electric van models available, with more than half of all LCV model lines now offered with a plug-in option. Generous manufacturer incentives and the government’s Plug-In Van Grant continue to support demand.

However, the SMMT said higher vehicle acquisition costs, increasing energy prices and continuing concerns around charging infrastructure remain significant barriers to wider adoption.

“Battery electric van uptake is rising, but not fast enough to match regulatory ambition, while the collapse in pickup demand shows how quickly tax policy can hit key sectors.

“If the transition is to succeed, regulation, infrastructure and incentives must be aligned with the realities of the market.”