New van sales dip amid economic uncertainty and tax changes

The number of new light commercial vehicles registered in the UK saw a decline in March, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).

A total of 51,221 new vans, 4x4s, and pick-ups joined UK roads last month, a decrease of 3.2% compared to a particularly strong March in the previous year.

The March registrations mark the fourth consecutive month of falling activity in the new van market, reflecting ongoing weak business confidence which is reportedly delaying investment in the newest models.

The drop in overall figures was largely driven by a significant 10% drop in registrations of large vans, although this segment still remains the most popular, accounting for 62.5% of the total market with 32,025 units.

Deliveries of medium-sized vans and 4x4s also experienced declines, falling by 8.5% to 8,180 units and 18.9% to 1,324 units, respectively.

However, there was a positive trend in demand for small vans, which continued its upward trajectory for the 13th consecutive month. Small van registrations increased by 60.8% to 1,585 units - giving them 3.1% of the market share.

Meanwhile, registrations of new pick-ups saw a significant surge of 40.6% last month, with 8,107 new models and variants joining UK roads.

This increase is believed to be largely due to more businesses investing in these essential vehicles ahead of upcoming pick-up truck tax changes in early April. Double-cab pick-ups will be reclassified as cars for benefit-in-kind taxation and capital allowance purposes.

As a result, the Ford Ranger sits in second position behind the Ford Transit Custom as the most sold vehicle in the UK.

The Toyota Hilux also made a rare appearance in the top 10, due to the increased demand for pick-up trucks during March.

The SMMT has expressed concerns that these impending tax changes will negatively impact businesses across various sectors, including automotive, farming, construction, and utilities, potentially leading to delayed investment and the continued use of older, more polluting vehicles.

The SMMT is urging the government to postpone these measures for at least one year to allow businesses and vehicle buyers more time to prepare for the changes.

Despite the overall dip in registrations, demand for new battery electric vans (BEVs) weighing up to 4.25 tonnes continued its positive momentum. Sales grew for the sixth consecutive month with a 40.3% increase to a new monthly high of 4,215 units.

In the first three months of 2025, BEVs have accounted for 8.3% of the new van market, a significant increase of 2.8% compared to the same period last year. This growth is attributed to substantial investment from manufacturers, with over half of all van models on the UK market now available as zero-emission options.

The SMMT underlined the importance of the Plug-in Van Grant in supporting the adoption of electric vans.

However, the current uptake of BEVs is still significantly below the government's target of 16% as set out in the ZEV Mandate for 2025.

Mike Hawes, SMMT Chief Executive, stated: “Vans, pick-ups and 4x4s are critical for business operations across the UK so four months of falling investment is concerning and reflects weak confidence, with further constraints set to impact the pick-up segment."

He added: "It is positive, however, that electric uptake continues to rise thanks to growing model choice. Even so, with demand still well below 2025 ambitions, suitably bold plans for infrastructure rollout and workable regulation are needed to grow operator confidence and the investment that is needed.”

Below are the overall sales for the year-to-date 2025, which sees the Ford Transit Custom continue to dominate van sales. A strong month for the Vauxhall Vivaro has meant that it how has some clear daylight between it and the Mercedes-Benz Sprinter van.