Van market shrinks every month in H1 2025, warns SMMT

The UK’s light commercial vehicle (LCV) market shrank every month in the first half of 2025, marking the worst January-to-June performance since 2022, according to new figures from the Society of Motor Manufacturers and Traders (SMMT).

Total LCV registrations fell by -12.1% to 156,048 units in the first six months, with a -14.8% year-on-year drop in June capping off seven consecutive months of decline.

The downturn, driven by a tough economic climate and fragile business confidence, is raising concerns across the commercial vehicle sector, particularly as manufacturers ramp up investment in zero-emission technology amid challenging market conditions.

The biggest drops were seen in the largest vans (up to 3.5 tonnes), which declined -14.8%, with 99,790 units registered. Medium vans saw a steeper fall of -20.9% to 26,408 units, while 4×4 LCVs dipped -6.0% to 4,041 units. The only bright spot was small vans, up 30.7%, although this low-volume segment could not offset the broader market downturn.

Registrations of new pick-up trucks were up 10.0% year-to-date, reaching 20,902 units, but that growth masked a more troubling trend. Following the government’s April tax change reclassifying double-cab pick-ups as cars for benefit-in-kind and capital allowance purposes, registrations declined for two consecutive months. The new tax rules have raised costs for businesses and may be deterring investment in cleaner pick-up models entering the market.

SMMT is urging the government to postpone the measure by at least one year, warning it will not only delay fleet decarbonisation but also reduce overall tax revenues as new registrations fall.

The zero-emission van market continues to expand, with battery electric van (BEV) registrations rising 52.8% in the first half of 2025 to 13,512 units, including a 97.0% jump in June alone. The market now offers nearly 40 electric van models, up from 28 last year.

However, BEVs still make up just 8.6% of LCV sales, well short of the government’s 16% ZEV mandate for 2025. That gap will be hard to close in the second half of the year without stronger policy and infrastructure support, SMMT warned.

The Plug-in Van Grant remains crucial in keeping zero-emission LCVs financially viable, but broader adoption is being held back by limited access to charging infrastructure, particularly at depots, public sites, and shared hubs.

SMMT is calling for a faster rollout of charging infrastructure tailored to commercial vehicle needs, including preferential treatment for depot grid connections, some of which face delays of up to 15 years. The industry also wants streamlined local planning policies to reduce uncertainty for fleet operators investing in electrification.

“Decarbonisation remains a shared ambition but with the EV market more than a third below this year’s target, bold measures are needed to drive demand. Accelerated CV infrastructure rollout, quicker grid connections and streamlined planning are now critical.”