The number of new light commercial vehicles (LCVs) joining UK roads grew 2.4% in October, with 26,974 new vans, pickups and 4x4s registered, according to the latest figures published today by the Society of Motor Manufacturers and Traders (SMMT). It represents the third consecutive month of overall market growth and the best October in three years.
The growth was driven by demand for small and medium vans, up 55.9% and 49.6% to 683 and 5,688 units respectively. Uptake of large vans, meanwhile, fell by -2.7% to 17,683 units, though these vehicles still represent the vast majority (65.6%) of the market. Demand for new pickups and 4x4s also declined, by -18.9% and -62.0% to 2,686 and 234 units respectively, after strong growth a year ago.
Future demand for new pick-ups, however, is now at serious risk following last week’s Budget announcement to tax double-cabs as cars for benefit in kind and capital allowances purposes beyond April 2025. The change is set to heap further costs on vital industries such as farming, construction, utilities, the self-employed and other businesses for whom these vehicles are an everyday workhorse. The industry urges the government to reconsider this move, therefore, and reflect February’s decision by HMRC to avoid harming these sectors with knock-on effects for the wider UK economy.
More positively, demand for new battery electric vans (BEVs) rose for the first time in five months, up 61.8% to 2,263 units, with new registrations of the very greenest models representing 8.4% of the whole new LCV market in October.3 Over the course of the year, however, uptake has fallen by -1.9% compared with the same period last year, accounting for a 5.6% market share – significantly below the level mandated.
The decline is despite significant manufacturer investment to grow Britain’s BEV choice to more than 30 cutting-edge, competitive models. The extension of the Plug-in Van Grant into the next financial year is welcome and necessary, but further measures are critically needed to give more fleet operators confidence that going electric is commercially viable. In particular, the lack of charge point infrastructure suited to the specific needs of vans presents a major barrier for fleet operators considering the switch and must be addressed quickly.
Mike Hawes, SMMT Chief Executive, said, “The continued growth in demand for new vans is encouraging given this sector is a barometer of the health of Britain’s businesses. Industry has invested huge sums in delivering cutting-edge technology, including zero-emission vehicles, but low demand raises serious doubt over the ability of the UK to achieve its ambitious green targets. There must be an urgent review of the market, regulation and support in place, else the cost will soon be felt in reduced UK investment, economic growth, jobs and decarbonisation.”
Comments from: Russell Olive, UK Director, vaylens,
“Heavy discounting and a more competitive market have ignited demand for BEVs. In October, demand accelerated by 24.5%, offering hope that progress is being made on the road to net zero.
“However, the sector is still facing challenges. There may have been a double-digit drop in petrol and diesel vehicle deliveries, but the reality is that it’s not enough to drive real change with 56.6% of buyers in October still opting for diesel or petrol
alternatives. And fleet uptake has been the big driver behind new BEV registrations, while demand among private buyers has been much lower.
“It’s also looking increasingly likely that the UK will fall short of the ambitious zero-emissions vehicle mandate of 22% by the end of the year.
“Fiscal incentives, such as this week’s decision to increase the differential between fully electric and other vehicles in the first rates of Vehicle Excise Duty, may help slightly. But to avoid momentum stalling, the industry needs more investment. Efforts
to increase the availability and distribution of charging points need to be continued. It’s also important that there is a plan in place to manage the growing amount of charging infrastructure. Robust systems that simplify the way charging stations are accessed,
maintained and monetised are needed to ensure a seamless EV experience.”
Comments from: Vicky Read, CEO of ChargeUK,
“At its core the EV transition needs two things – EVs to be sold and chargers to be deployed.
“Today’s SMMT figures, the third month in a row of sustained and solid EV sales, shows the demand from drivers is there and the ZEV targets are doing their job.
“Those same targets are the bedrock for £6bn of private investment in charging infrastructure, which is also being rolled at record rate, month after month, ready for all those new EVs.
“No-one ever said the ZEV mandate was going to be easy, but it’s working; weaken the targets now and willingness to invest in charging will dissipate and the EV transition will grind to a halt.”
