New van sales saw a significant downturn in January 2025, with registrations falling by 20.5%, according to figures released by the Society of Motor Manufacturers and Traders (SMMT).
A total of 19,050 vans, pick-ups, and 4x4s were registered, marking a second consecutive month of decline after a period of strong growth in 2024. The SMMT attributes the slump to a challenging economic climate and weakened business confidence.
The decline affected nearly all market segments. While small van registrations saw an 89.8% increase to 668 units, representing just 3.5% of the overall market, this growth was overshadowed by significant drops in other categories.
Registrations of the large vans, which make up the majority of the market (60.6%), fell by 22.3% to 11,537 units. Medium van registrations also suffered, declining by 30.4% to 3,507 units.
Smaller volume segments, including 4x4s and pick-ups, saw decreases of 27.2% and 6.5%, respectively.
Despite the overall market downturn, battery electric van (BEV) uptake continued its upward trend for the fourth consecutive month, boosted by the Plug-in Van Grant.
BEV registrations rose by 12.4% to 1,464 units, achieving a market share of 7.6%.
The SMMT forecasts continued growth in BEV adoption, projecting volumes of 33,000 units (up to 3.5T) in 2025, representing a 10.6% market share.
However, this projection falls short of the 16% mandate. The overall LCV market is expected to contract by 1.2% to 348,000 units in 2025.
Manufacturers have heavily invested in EV technology, with over half of all van models in the UK market now available as zero-emission vehicles. However, the SMMT emphasizes that government support is crucial to achieving EV adoption targets.
They are calling for an ambitious fiscal and infrastructure strategy, including a faster rollout of charge points designed to meet the specific needs of vans, to build operator confidence in zero-emission fleets.
As the government reviews the Zero Emission Vehicle Mandate, the SMMT urges the implementation of measures and flexibilities that will support both the industry and van buyers.
