- New light commercial vehicle market falls -5.1% in July, the
eighth successive month of decline.
- Electric van uptake up 72.6% but market share lags behind
mandated levels.
- 2025 outlook revised down to 321,000 units, reflecting tough
economic conditions and weak business confidence.
The new light commercial vehicle (LCV) market fell by -5.1% in
July with 24,433 vans, 4x4s, pickups and taxis joining the road,
according to the latest figures published today by the Society of
Motor Manufacturers and Traders (SMMT). This marks the sector's
eighth consecutive month of decline, and the weakest July since
2022,1 as sluggish business confidence deters fleet
investment, and economic conditions remain tough.
Demand fell across most segments in the month, with uptake of the
smallest vans recording the sharpest drop, down -20.6% to 738
units, while deliveries of the largest models fell -4.6% to
16,040 units. Following April's tax change to treat double-cabs
as cars for benefit-in-kind and capital allowance purposes, the
pickup segment declined for a third consecutive month, down
-17.3% to 1,897 units. Growth, however, was recorded in
registrations of mid-sized vans, up 2.5% to 4,138 units, and
4x4s, up 0.5% to 620 units.
Manufacturers have invested heavily to deliver choice across a
range of electric van models, payloads and price points – with
more than 40 to choose from. The market is responding, with
deliveries of BEVs rising by 72.6% to 2,442 in July – totalling
eight months of continuous growth. In the year to date, however,
BEVs represent just 8.8% of the overall market – a significant
distance from the 16% mandated, indicating a pressing need for
action to boost operator confidence.2 Expediting depot
grid connections, ensuring efficient implementation of local
planning and promptly delivering LCV-suitable infrastructure, are
all essential to encourage investment and accelerate the
transition.
The latest 2025 outlook has been revised downwards, with the
market now expected to decline by more than 30,000 units, or
-8.7%, to 321,000 units.3 The BEV share of LCV
registrations up to 3.5T has also been adjusted downwards for
2025, to 8.6%,4 with a marginal increase to 13.7%
expected in 2026 against a mandated target of 24% in that year.
Mike Hawes, SMMT Chief Executive,
said, “Eight months of LCV market decline
underlines the ongoing economic pressures facing businesses, yet
the sector remains steadfast in its commitment to decarbonise.
Manufacturers continue to invest in delivering a diverse range of
zero emission vans to suit every use case, and it's encouraging
to see uptake growing – but to meet mandated targets, it must
grow faster. Accelerating infrastructure rollout, streamlining
planning processes and providing targeted support for fleet
operators are essential to drive progress and keep the UK at the
forefront of road transport decarbonisation.”
Notes to editors1: LCV registrations, July 2022: 18,722 units
Notes to editors
1: LCV registrations, July 2022: 18,722 units
2: SMMT's BEV LCV registration data reflects the Vehicle
Emissions Trading Scheme, in which BEVs weighing >3.5-4.25t
contribute towards each manufacturer's target, in addition to
those weighing ≤3.5t
3: Previous outlook for 2025 at April: total LCV market 337,000
units, with BEV share at 9.1% in 2025 and 13.3% in 2026
4: 2025 outlook is inclusive of vehicles up to 3.5t and does not
include vans in the >3.5-4.25t range
