Registrations of new vans has fallen for a fifth successive month as growing economic uncertainly looms.
April registrations fell by a massive 14.9% to 20,332 sales of new vans, 4x4s, and pick-ups. That's according to figures released today by the Society of Motor Manufacturers and Traders (SMMT).
The near-15% drop marks the weakest April performance since 2020. Although it can be partly attributed to the timing of Easter and the month traditionally being a period of lower sales after the plate-change in arch, as it is the fifth consecutive month of falling demand, experts fear it is signalling a worrying level of weak business confidence.
The drop in registrations was most pronounced in the large van segment, which saw a sharp decrease of 22.9% to 12,113 units. Large vans still make up nearly 60% of all new LCVs registered, however, medium vans fell by 5.8% and small van deliveries dropped by 5.5%.
Bucking the overall trend were new 4x4s, which saw a 19.2% increase in registrations, and pick-ups, which rose for the second consecutive month by 10.2%. This growth in pick-ups is likely linked to businesses fulfilling orders placed before the introduction of new tax rules treating double-cab pickups as cars for benefit-in-kind and capital allowance purposes.
The SMMT has voiced strong concerns over this impending tax change, warning that it risks increasing costs for vital sectors such as farming, construction, and utilities.
They argue this could force companies to delay new vehicle orders, keeping older, more polluting vehicles on the road for longer and potentially reducing tax revenues. The SMMT is urging the government to postpone the implementation of these changes for at least a year to allow businesses more time to prepare.
Despite the overall decline, there was an improvement in the demand for new battery electric vans (BEVs) weighing up to 4.25 tonnes which increased by an impressive 77.5% in April.
This marks the seventh consecutive month of growth in this sector, with BEVs now accounting for 8.3% of the market – up 4.3% compared to the same month last year.
This growth is being fuelled by substantial investment from manufacturers, resulting in a growing range of nearly 40 different electric van models available in the UK.
However, the SMMT points out that the current 8.3% BEV uptake for 2025 is significantly short of the mandated 16% market share.
The SMMT says that while the Plug-in Van Grant remains crucial, further action is needed to accelerate the transition to electric vehicles.
A key obstacle highlighted is the lengthy grid connection process for depot charging, which can take up to 15 years – far beyond the 2035 end-of-sale date for new petrol and diesel vans.
The SMMT is calling for an urgent overhaul of grid connection procedures and the prioritisation of transport depots, similar to recent government action for data centres and renewable energy projects.
They also emphasise the need for more commercial vehicle-specific public charging infrastructure across the UK's strategic road network, along with more affordable energy and consistent local planning policies, to provide fleet operators with the confidence to transition to zero-emission vehicles sooner.
Mike Hawes, SMMT Chief Executive, said: “Five months of shrinking demand for new vans reflects weaker business confidence and a challenging economic environment. Such conditions discourage fleet upgrades into new zero emission technology, meaning older, more polluting vehicles stay on the road longer. Switching must have clear commercial benefits, so the sector needs bold and assertive action if ambitious mandate targets are to be met. Preferential treatment for grid connections, more affordable energy and consistent local planning – all are needed to make the case for going electric unarguable.”
SMMT’s latest market outlook expects the new LCV market to fall by -4.3% to 337,000 units in 2025, almost 11,000 units fewer than expected in January.
The overall BEV share (up to 3.5 tonnes), meanwhile, is expected to end the year at just 9.1% before reaching 13.3% in 2026 – considerably below mandated targets of 16% and 24% this year and next.
