The UK’s new light commercial vehicle (LCV) market declined for
the seventh consecutive month in July, down -20.7% to 18,722
units, according to the latest figures published today by the
Society of Motor Manufacturers and Traders
(SMMT).2
The decline, despite strong order books, is the result of ongoing
global supply shortages caused by the Covid-19 pandemic, with
last month’s registrations total some -23.9% below the
pre-pandemic five-year average for July.3
July saw a fall in registrations across all LCV segments, with
some 14,782 new vans weighing above 2.5 tonnes up to 3.5 tonnes
registered in the month, -11.2% below 2021. The number of lighter
vans weighing less than or equal to 2.0 tonnes dropped by -20.3%,
while those weighing more than 2.0 tonnes to 2.5 tonnes declined
by -49.8%.
As industry investment in battery electric vans (BEVs) continues,
with one in three models on the market now available with a plug,
demand continues to increase with 765 BEVs registered in July, up
21.2%, and a continuation of increased uptake seen in the first
six months of 2022, as van buyers take advantage of new electric
models that offer longer ranges, efficiency savings and fast
charge times. As a result, there have been 8,865 BEVs registered
in the year to date, an increase of 55.7%. This still represents
only one in 18 of all vans registered so far in 2022 but is up
from one in 37 a year ago.
With total registration volumes remaining weak, the industry
outlook has been downgraded from 328,000 to 307,000 new
registrations for the year, a decline of -6.5% on the previous
outlook published in April. As a result, the market is now
expected to finish -13.7% down on 2021, which saw uptake almost
reach pre-pandemic levels.4 With the
semiconductor shortage expected to begin to ease during 2023,
volumes for that year are anticipated to reach 357,000 units, a
16.4% rise. BEVs are still expected to account for 6.4% of
registrations this year, while 2023’s outlook has been revised
downwards slightly, from 9.6% to 9.2%.
The shortage of dedicated electric charge points for this sector
remains a critical obstacle to the achievement of ambitious
timescales for the decarbonisation of the commercial vehicle
fleet. Petrol and diesel vans have the same end of sale date as
cars in 2030, yet new electric LCV registrations are currently at
levels seen in the new car market in 2020, with a majority of van
buyers citing charging infrastructure as their major concern over
whether an EV can meet their professional and daily
needs.5 As energy costs and inflation impact
business and consumer confidence, it is crucial that barriers to
infrastructure access are immediately addressed.
Mike Hawes, SMMT Chief
Executive, said, “The LCV
market is struggling to recover post-Covid as global supply chain
shortages and economic headwinds make the business environment
even more challenging for both manufacturers and operators. In
these circumstances, the continued growth in electric van uptake
is admirable as the industry strives to deliver its Net Zero
commitments. Given the importance of the commercial vehicle
sector to Britain’s economy, its environmental ambitions and the
need to keep society on the move, the next Prime Minister must
look to restore economic confidence and support the sector’s
transition to zero emission mobility.”
Notes to editors
1 Car BEV market share in Jan-July 2020: 4.7%
2 July’s figures reflect a short interruption to registrations
processing at one manufacturer due to a planned systems upgrade
affecting a limited number of vehicles. This does not materially
affect the overall market performance.
3 Pre-pandemic five-year average for July: 24,598
4 2021 LCV registrations: 355,380 (-2.8% on 2019)
5 Savanta poll of 500 van owners, conducted between 11-18 May
2022: https://media.smmt.co.uk/uk-van-owners-and-operators-survey/
