Registrations of new vans dropped by 19.3% in the UK during February, with 14,476 units registered.
This marks the third consecutive month of decline, resulting in the lowest February registration numbers since 2020.
February is traditionally a month of lower sales volume, as many operators postpone purchases until the new number plate release in March, with a decline in demand seen across most vehicle segments.
The SMMT said weakened business confidence ahead of upcoming tax changes had lowered demand.
Registrations of medium vans (2 to 2.5 tonnes) saw a reduction of 33%, with 2,119 units registered, while large vans (2.5 to 3.5 tonnes) experienced a 19.0% drop, totaling 9,962 units.
The 4x4 and pick-up truck segments also recorded decreases, with declines of 45.7% and 4.8% respectively. Small vans (under 2.0 tonnes), however, saw an increase of 55.3%, totaling 427 units, representing 2.9% of the market.
Despite the overall market decline, registrations of battery electric vans (up to 4.25 tonnes) continued to grow, marking the fifth consecutive month of increase.
A total of 1,413 units were registered, a 55.1% rise, while market share increased to 9.7%.
The SMMT highlighted the expanding range of available zero emission van models and welcomed the continuation of the Plug-in Van Grant.
Industry representatives have emphasised the need for accelerated development of charging infrastructure, including van-specific charging points, and the reintroduction of discounted Vehicle Excise Duty (VED) for zero emission vehicles.
The SMMT also stressed the importance of urgent action and effective regulation to achieve the government's target of a 16% zero emission new van market share this year, and called for a review of the Zero Emission Vehicle Mandate.
Mike Hawes, SMMT Chief Executive, said: “Against an increasingly difficult economic backdrop, van manufacturers have shown resilience, but the decline was perhaps inevitable after two years of strong performance. Even in a contracting market, however, zero emission uptake is positive but still struggles to match the ambition of regulation. While the ongoing Plug-in Van Grant provides a lifeline, we still need support to bolster operator confidence, boost demand and deliver decarbonisation. Industry has committed billions to this vital transition and the mandate review must deliver workable measures that enable that commitment to deliver our shared ambition.”
