New light commercial vehicle registrations in the UK have continued their downward trend, falling by 11.8% in May.
The drop is the sixth consecutive month of decline, with a total of 22,796 new vans, 4x4s, and pick-ups joining UK roads during the month of May.
Figures from the Society of Motor Manufacturers and Traders (SMMT) show that last month was the lowest May performance since 2022. The SMMT attribute the drop largely to weak business confidence, hindering fleet investment.
The slump in demand was felt across almost all van segments. Deliveries of large vans saw the steepest decline, down 14% to 14,652 units. Medium-sized vans fell by 9.2% to 4,065 units and small vans by 7.8% to 673.
The only segment to buck the trend was new 4x4s which saw a 36.9% increase, reaching 716 units, but with such small numbers, these figures are always very variable and often extreme.
The pick-up segment experienced a 12.7% decline to 2,690 registrations, which is likely to be a direct consequence of new taxation measures introduced in April, which now treat double-cab pick-ups as cars for benefit-in-kind and capital allowance purposes.
The SMMT argues that this tax change is burdening businesses in critical sectors such as farming, construction and utilities, as well as sole traders.
All of these sectors rely heavily on pickups for their operations. The SMMT suggests that discouraging new orders will help keep older, more polluting vehicles on the road for longer and ultimately reduce tax revenues due to lower sales volumes. The SMMT is therefore urging the government to postpone this change for at least a year, allowing both industry and customers more time to adapt, especially with new lower and zero-emission vehicles entering the market like the Ford Ranger PHEV.
Despite the overall market decline, the uptake of battery electric vans (BEVs) continues to show significant growth, increasing by 50% in May to 1,731 units.
Contrary to the overall market decline, this marks the seventh consecutive month of rising demand for electric vans. Businesses now have access to almost 40 BEV models.
However, despite this growth, zero-emission vans accounted for only 7.6% of the total LCV market in May, and 8.2% year-to-date. This figure is well behind the government's mandated target of 16% market share for 2025.
The SMMT also acknowledged the vital role played by the Plug-in Van Grant for buyers, but stresses that rapid investment in LCV-suitable charging infrastructure is paramount for further decarbonisation.
They also highlight the critical need for preferential treatment for depot grid connections, citing waiting times of up to 15 years, which extend beyond the 2035 end date for internal combustion engine vehicle sales.
