The UK van market has made its weakest January start since 2012 as pick-up demand collapses following tax changes.
New light commercial vehicle (LCV) registrations fell 7.8% year on year in January, with 17,562 vans, pickups and 4x4 LCVs joining UK roads, according to the latest data published by the Society of Motor Manufacturers and Traders.
The start to the year is the weakest opening month since 2012 and underlines the pressure on fleet investment amid fragile business confidence.
The downturn was led by a dramatic slump in pick-up registrations, down 57.0% to 1,206 units. The collapse follows recent tax changes that reclassify double-cab pickups as cars for benefit-in-kind and capital allowance purposes, a move the industry has warned would add significant costs for business buyers.
Medium vans also saw a sharp contraction, with registrations down 27.4% to 2,547 units, while the already small-volume compact van segment fell 39.8% to just 402 units.
In contrast, demand held up better at the top end of the market where large van registrations rose 10.0% to 12,696 units.
Electric van uptake continued to rise, with registrations up 26.0% to 1,844 units. However, battery-electric models accounted for just 10.4% of the total market, well short of the 24% share required under the 2026 zero-emission mandate.
Even with more than half of all van models now available with an electric powertrain and manufacturers offering unprecedented discounts, the gap remains substantial.
SMMT has also revised down its outlook for the year ahead. Total LCV registrations in 2026 are now forecast at 321,000 units, a 1.9% increase on 2025 but a notable downgrade from the 335,000 units predicted in October.
While battery-electric van volumes are still expected to grow by more than 50% this year, their projected market share has been trimmed to 13.1%, down from a previous expectation of 14.0%.
The industry is again calling on government to provide clearer and longer-term support to unlock demand. While the extension of the Plug-in Van Grant until 2027 has been welcomed, manufacturers and operators are seeking urgent clarity on what support will look like beyond April.
For individual models it was business as usual with the Ford Transit Custom topping the sales charts with 2,740 registrations. The Vauxhall Vivaro took second spot with 1,374 and the Volkswagen Transporter was the only other model to reach four-digit sales volumes.
Surprise entries came from the Nissan Primastar and also the Land Rover Defender, with 533 registrations making up the bulk of the 711 sales of 4x4 LCV models.
