UK Light Commercial Vehicle Registrations Dip in July
According to the latest figures released by the Society of Motor Manufacturers and Traders (SMMT), the UK’s light commercial vehicle (LCV) market saw a decrease of -8.5% in July, with 24,689 vans, 4x4s, pickups, and taxis registered. While this figure is lower compared to the very strong July of 2023 – the best in three years – the overall market remains robust. Year-to-date, registrations are up 2.7%, making it the best first seven months since 2019.
The decline in demand in July affected most segments. Registrations of the largest vans were down -12.0%, still representing over two-thirds (68.1%) of the overall market. New medium-sized van registrations also fell by -8.4%. Pickups and 4x4s saw drops as well, decreasing by -5.1% and -2.1%, respectively. However, demand for the smallest vans saw a significant increase in July, with registrations more than doubling (117.6%) to 929 units. The small van market has been strong in 2024, with demand up 42.0% year-to-date, boosted by new model launches.
Manufacturers are introducing more battery electric vehicle (BEV) models, with 28 now available to UK buyers, up from 25 last year. These models offer competitive payloads and ranges. However, the uptake of BEVs decreased in July, with new registrations down -14.6% to 1,415 units. Since January, BEVs have accounted for 5.1% of all new vans.
Given the government mandate for BEVs to comprise at least 10% of new van sales in 2024, demand needs to rise significantly in the coming months, especially with the September number plate change approaching. Although the industry has invested heavily in bringing more BEVs to the market, uptake must accelerate. This requires all stakeholders to contribute. The industry needs mandated targets for van-suitable charging infrastructure, and the Plug-in Van Grant should be maintained beyond April 2025 so that more businesses can decarbonize.
The latest outlook for the year remains positive, with an expected 351,000 units, a 2.8% increase over 2023. However, the BEV share of LCV registrations under 3.5t has been revised downwards to 6.6%.
Mike Hawes, SMMT Chief Executive, said:
Britain’s new van market remains robust following a record-equalling growth run and, despite a dip in June and July, demand will resume with manufacturers offering impressive product line-ups. Declining uptake of the very greenest models remains a major concern, however, given the UK’s zero emission ambitions. Industry has invested – and continues to commit – billions into this transition but manufacturers cannot deliver this alone. Given the paucity of van-specific charging infrastructure, we need an equally ambitious mandate for chargepoint rollout, one that supports operators right across the country.
Key Points:
- Overall LCV registrations down -8.5% in July. However, year-to-date registrations are up 2.7%.
- Demand dipped in most segments.
- Small van registrations more than doubled.
- BEV registrations decreased by -14.6% in July, with the share of under 3.5t LCVs revised downwards to 6.6%.
Note: Data reflects the Vehicle Emissions Trading Scheme with BEV vans weighing >3.5-4.25t contributing towards each manufacturer’s target, in addition to LCVs ≤3.5t.
