SMMT: Van market shrinks in 2025 despite EV growth

• New light commercial vehicle market declines by -10.3% with 315,422 registrations in 2025.
• All but lower-volume segments contract, including pick-ups after double cab tax change ends growth.
• EV demand rises 36.2% but still well below mandated level, with steep 2026 ambition requiring urgent review.

The UK's new light commercial vehicle (LCV) market declined by -10.3% in 2025 with 315,422 vans, pickups and 4x4s registered, according to the latest figures published today by the Society of Motor Manufacturers and Traders (SMMT). Fleet renewal shrank in every month last year other than December, which posted a slight 1.7% rise, reflecting a challenging economic environment and weak business confidence.

Across the year, registrations of new medium-sized vans declined -20.7% to 51,639 units, while large vans dropped -9.8% to 210,262 but remained the most popular segment with a 66.7% share of the overall market. Pickups also ended the year down, by -0.7% with 37,308 registrations, despite growth in early 2025 to get ahead of government's tax change – which now treats double cabs as cars for benefit in kind and capital allowance purposes.¹ There was growth in the lower-volume segments, with registrations of small vans and 4x4s up 1.9% and 2.3% respectively, to 8,766 and 7,447 units.

More positively, deliveries of new battery electric vans (BEVs)² rose by an impressive 36.2% with 30,169 registrations – a new annual record. The growth is a significant achievement in a contracting overall market, driven by massive industry investment to provide more than 40 different zero emission van models – representing more than half of new model choice. Despite this offering, manufacturers still had to subsidise the sale of their cutting-edge innovation to bridge the gap between mandated ambition and real-world demand, with almost £400 million in discounts in 2025.³ The full year EV market share stands at only 9.5%, however, well short of the 16% mandated for the year, reflecting a clear gap between ambition and reality.

Critical barriers to take up remain, including higher production costs, a paucity of van-suitable public charging and lengthy waiting times for depots to get connected to the grid. The extension of the Plug-in Van Grant, the new Depot Charging Scheme and proposed planning reform for private charger installations will help, but the steep rise in mandated ambition to 24% in 2026 will need further action. An urgent review of the transition is essential, ensuring the regulation and support measures deliver required demand without undermining industry's viability. With changes taking place in the EU, US and elsewhere, the UK market must remain healthy to safeguard its investment appeal.

Mike Hawes, SMMT Chief Executive, said, “2025's new van market reflects a tough economic environment which constrained fleet investment. While rising EV uptake is encouraging, it has come at a huge cost to industry and remains significantly adrift of ambition. Government's upcoming review must acknowledge the unique challenges facing the light commercial vehicle sector and the additional action required, else the gap between market regulation and reality will continue to widen.”