Four straight months of sliding van sales

The traditional new-registration plate bounce was not enough to rescue the UK’s new van market which saw a decline in sales for a fourth consecutive month. Registrations of new vans were down 3.2% in March with a total of 51,221 vans, 4x4s and pick-ups joining UK roads, according to the latest figures published by the Society of Motor Manufacturers and Traders (SMMT). The slide was in sharp contrast to March 2024, which saw a particularly strong performance of close to plus 50%.  According to the SMMT weak business confidence is continuing to hold back investment in the new LCVs. The biggest sector of the market, for larger vans between 2.5 and 3.5 tonnes slid by 10%, the 32,025 units representing 62.5% of the overall market. The figures for medium-sized 2.0 to 2.5-tonne vans also saw a fall of 8.5% to 8180 registrations, while thew smallest sub 2-tonne vans jumped by 60%, but only representing a small part of the market with 1324 registered.

The other major growth area was in registrations of new pickups, surging by 40.6% to 8,107 registrations with the Ford Ranger the second most purchased LCV in the month and the Toyota Hilux also making the top ten.

This growth is being put down to savvy buyers beating significantly increased costs as from early April the Government has introduced controversial new measures treating double-cabs as cars for benefit in kind and capital allowance purposes.

Revealing the figures the SMMT argued that the fiscal measures on double-cabs will heap additional costs on businesses in sectors that make an important contribution to national and local economic growth – from automotive and farming to construction, utilities and sole traders. This, says the SMMT, will encourage many users to hold off from investing in new pick-ups, keeping more polluting vehicles on the road and, counterproductively, reducing tax revenues. The industry body pointed to the UK’s highly challenging economic environment, and urged the Government to delay the measures for at least one year so industry, businesses and vehicle buyers can prepare for the change.

One positive aspect of the March figures was continued growth in business investing in battery-electric vans (BEVs). The March BEV figures were up 40.3% to a record 4,215 units and the 8.3% of the market so far claimed by BEVs in 2025 is 2.8% up on 2024.

However despite the Government continuing its plug-in van grant, a measure described as fundamental by the SMMT, current BEV take-up is still at little more than half the 16% zero emission market share for 2025 demanded by the Zero-Emission Vehicle Mandate. The SMMT called for urgent action to increase take-up, including greater investment in LCV-suitable charging infrastructure.

“Vans, pick-ups and 4x4s are critical for business operations across the UK so four months of falling investment is concerning and reflects weak confidence, with further constraints set to impact the pick-up segment,” commented Mike Hawes, Chief Executive of the SMMT.

He added that while rising electric uptake was a positive factor, demand is still well below 2025 ambitions,. “Suitably bold plans for infrastructure rollout and workable regulation are needed to grow operator confidence and the investment that is needed.”