New Van Market Shows Strength in October, Amidst EV Concerns
London, November 5, 2024 – The UK’s light commercial vehicle (LCV) market experienced a positive October, with registrations reaching a three-year high. However, the Society of Motor Manufacturers and Traders (SMMT) is calling for further support to boost the adoption of electric vans.
Overall LCV registrations increased by 2.4% in October, with 26,974 new vans, pickups, and 4x4s joining UK roads. This marks the third consecutive month of growth and the best October performance since 2021, when 24,420 units were registered. The gains were primarily driven by demand for small and medium vans, which saw significant increases of 55.9% and 49.6%, respectively.
Large vans, while still representing the majority of the market (65.6%), experienced a slight decline of -2.7%. Demand for new pickups and 4x4s also decreased, dropping by -18.9% and -62.0%, respectively, following a strong performance in the previous year.
The recent budget announcement to tax double-cab pickups as cars for benefit-in-kind and capital allowances purposes from April 2025, presents a serious risk to future demand in the crucial pickup market. The SMMT urges the government to reconsider this measure, highlighting the potential impact on essential sectors like farming, construction, and self-employed businesses.
On a more positive note, the registration of new battery electric vans (BEVs) rose for the first time in five months, up 61.8% to 2,263 units. BEVs represented 8.4% of the total new LCV market in October. However, overall uptake for the year is down -1.9% compared to the same period last year, accounting for just a 5.6% market share – significantly below the level mandated.
Despite substantial investment from manufacturers in expanding the range of electric van models, the SMMT stresses the need for additional measures. The industry welcomes the extension of the Plug-in Van Grant, but further support is critical to give fleet operators the confidence to transition to electric vehicles. A significant barrier is the lack of appropriate chargepoint infrastructure suited to the specific needs of vans, which must be addressed swiftly.
Mike Hawes, SMMT Chief Executive, commented:
“The continued growth in demand for new vans is encouraging given this sector is a barometer of the health of Britain’s businesses. Industry has invested huge sums delivering cutting-edge technology, including zero emission vehicles, but low demand raises serious doubt over the ability of the UK to achieve its ambitious green targets. There must be an urgent review of the market, regulation and support in place, else the cost will soon be felt in reduced UK investment, economic growth, jobs and decarbonisation.”
