SMMT: Van market posts half-year gain but EV transition still lags

• 31,602 new vans, pickups and 4x4s join UK roads in June, up 12.2% year on year.
• Medium and heavy van demand rises, but pickup registrations fall for ninth month, down -57.6% as fiscal changes continue to impact demand.
• Battery electric uptake grows 23.2% to push market share to 11.5%  but still less than half the mandated target.

UK new light commercial vehicle (LCV) registrations rose 12.2% in June to 31,602 units, according to the latest figures published today by the Society of Motor Manufacturers and Traders (SMMT). The third consecutive month of growth lifted first half registrations by 1.7% to 158,648 units, reversing the decline recorded during the same period last year.

The June uplift was driven primarily by demand for larger vans. Registrations of vans weighing between 2.5 and 3.5 tonnes increased 12.6% to 21,951 units in the month, while medium-sized vans rose 62.1% to 6,795 units. 4x4 registrations grew by 20.8%, but vans weighing less than 2.0 tonnes declined by -19.3%.

Pickup demand continued to decline, falling -57.6% to 1,167 units and now representing just 3.7% of the total market, versus 9.8% a year ago. The downturn follows the reclassification of double cab pickups for Benefit in Kind and capital allowance purposes, a change that continues to impact sectors negatively, including construction, agriculture and utilities where these vehicles play a critical role. SMMT is reiterating its call on government to reverse the measure to support fleet renewal and accelerate the uptake of newer, lower-emission vehicles.

Battery electric vehicle (BEV) registrations, meanwhile, rose for a third month, up 23.2% to take an 11.5% market share.¹ The strong monthly performance contributed to a positive first half of the year for electric vans, with market share increasing from 8.6% to 9.9%. Demand, however, remains well below the 24% share mandated this year a target that would require uptake to average some 40% market share, four times its current level, over the next six months. Such growth under current conditions is implausible.²

While substantial manufacturer investment means that more than 40 van models are now available as zero emission, significant barriers remain, including higher upfront costs, charging infrastructure concerns and operating cost pressures all of which influence purchasing decisions.

The market assumptions underpinning the mandate no longer reflect economic or industrial realities. Urgent reform is therefore needed to keep decarbonisation on track while supporting investment, preserving customer choice and safeguarding UK competitiveness.

Mike Hawes, SMMT Chief Executive, said, The LCV market's return to growth is encouraging, but it comes against a backdrop of lower volumes and significant market disruption over the past 18 months, not least the sharp fall in pickup demand after tax changes. While businesses continue to invest in new vans, zero emission uptake remains well below ambition, holding back the fleet renewal needed to deliver net zero. A successful transition requires regulation, infrastructure and incentives to work together, giving operators the confidence to invest. With the gap between targets and demand continuing to widen, urgent reform of the mandate is needed to keep the transition on track.