News

The new light commercial vehicle (LCV) market experienced its fourth consecutive month of growth, with registrations increasing by 10.5% last month, as reported by the Society of Motor Manufacturers and Traders (SMMT).

The market saw 30,300 new vans, pick-ups, and 4×4s registered, marking the second-largest November on record.

Growth was observed across all van weight categories, with small van registrations up by 128.6% to 999 units, medium vans increasing by 9.8% to 4,999 units, and large vans rising by 13.5% to 20,504 units.

Registrations of 4×4s also increased, up by 33.4% to 786 units while pick-up registrations declined by 20.4% to 3,012 units.

The recent Autumn Budget has further jeopardised this segment, which has been declining throughout the year, the report said.

As the year concludes, concerns about the zero-emission vehicle mandate's impact on buyer choice, volume delivery, and UK industrial competitiveness are growing.

From April 2025, double-cab pick-ups will be taxed as cars for benefit in kind and capital allowances, adding cost pressures for businesses in construction, farming, utilities, and self-employment sectors.

The industry is urging the government to reconsider and uphold HMRC’s February decision to prevent negative impacts on market growth and affected sectors.

Electric van registrations grew for the second consecutive month, rising by 36.7% to 2,322 units, partly due to the Plug-in Van Grant, which will continue next financial year.

However, the government requires 10% of each brand's new van registrations to be zero emission this year yet year-to-date market share has decreased from 5.9% to 5.8%.

Significant industry investment means half of all van models are now zero-emission, offering operators a wide selection. Despite this, the absence of a national network of van-specific charge points leaves companies hesitant to switch in larger numbers, the report added.

The latest market outlook predicts volume growth of more than 85% in 2025, but the BEV market share is expected to reach only 10.6%, falling short of the 16% target.

SMMT chief executive Mike Hawes said: “The UK light commercial vehicle market continues to build back after a challenging start to the year, delivering the best performance since 2021 and the unleashing of pent-up demand.

“Britain’s appetite for zero-emission vans continues to lag behind government ambition, however, and market share this year is heading in the wrong direction.

“With warnings over UK competitiveness now translating into tangible impacts, a fast-tracked review of market regulation is essential to ensure manufacturers can deliver the choice, growth and decarbonisation the nation needs.”