UK LCV Market Update
The UK’s light-commercial vehicle (LCV) market showed mixed results in March 2025. While new van registrations continued to struggle, the used-van market saw improvement. According to data analyzed by Andy Picton, specialist residual value analyst at Glass’s, and Autovista24 special content editor Phil Curry, the new LCV market dropped for the fourth consecutive month.
New LCV Registrations Decline
A total of 51,221 new vans, pickups, and chassis variants were registered in March, representing a 3.2% year-on-year decline. The most significant drop occurred in vans between 2.5 and 3.5 tonnes gross vehicle weight (GVW), which fell by 10% to 32,025 units. This segment remains the most popular, accounting for over 62.5% of all registrations.
In contrast, vans under 2 tonnes GVW saw a 60.8% increase in registrations, reaching 1,585 units. The pickup sector experienced a 40.6% rise, with 8,107 new registrations, largely due to changes in Benefit in Kind (BIK) and capital allowances effective from April 1, 2025.
Market Share and ZEV Mandate
Ford dominated the LCV market, occupying the top three spots in the best-seller table. The Ford Transit Custom led with more than twice as many registrations as the second-placed Ford Ranger pickup. Stellantis Pro One and other brands also saw significant sales with models like the Vauxhall Vivaro and Citroen Berlingo.
The market share of zero-emission vehicles (ZEVs) remains below the 16% target set for 2025. However, the UK government has made revisions to the ZEV mandate to ease the transition, including extending the transfer of non-ZEVs to ZEVs from 2026 to 2029 and reducing fines for non-compliance.
Electric LCVs Gain Traction
Battery-electric vans up to 4.25 tonnes GVW saw a 40.3% increase in registrations, reaching 4,215 units in March. This represented 8.2% of the total LCV market. Vauxhall, Ford, and Volkswagen were among the top manufacturers of electric vans.
Used-Van Market Shows Positivity
The used-van market demonstrated a good balance between stock and buyer activity, leading to increased sales and average prices in March. Clean, low-mileage stock was particularly sought after. The average age of stock at auction decreased, and average sales prices rose by over 7.3%.
Medium-sized vans remained the most desirable in the used market, accounting for 40.1% of total sales. The 4×4 pickup sector saw the highest average sale price at £13,434. Overall, first-time conversion rates improved across various segments.
The used electric van market also saw more stock entering the market, although sales remained static at 1.68%. Average sale prices for electric vans increased by 4.3% to just under £8,150.
These market trends indicate a challenging environment for new LCV sales, while the used-van market shows signs of stability and growth, particularly in the electric van segment.
