The UK’s light commercial vehicle (LCV) market fell by -11.8% in May, with just 22,796 new vans, 4x4s and pick-ups registered, according to figures released today by the Society of Motor Manufacturers and Traders (SMMT).
The data marked the sixth consecutive month of contraction and the lowest May performance since 2022, as fragile business confidence continues to suppress fleet investment.
Registrations declined across all major van segments. Large vans, which make up the bulk of the market, dropped -14.0% to 14,652 units.
Medium-sized vans fell -9.2% to 4,065, and small vans were down -7.8% to 673. Pick-up registrations also declined by -12.7% to 2,690 units.
The only segment to record growth was 4x4s, which rose 36.9% to 716 registrations. However, this modest increase was not enough to offset declines elsewhere.
SMMT attributed part of the overall slowdown to new fiscal measures introduced in April that reclassify double-cab pick-ups as cars for benefit-in-kind and capital allowance purposes.
The change has raised operational costs for businesses across sectors such as farming, construction and utilities – industries that depend heavily on these vehicles.
SMMT has called on the government to delay the change by at least 12 months, warning that current policy risks keeping older, more polluting vehicles on the road while also reducing tax revenues due to falling sales volumes.
Despite the broader decline, battery electric van (BEV) registrations rose sharply in May, up 50.0% to 1,731 units.
This marked the seventh straight month of growth for the zero-emission segment.
Nearly 40 BEV models are now available in the UK market, catering to a wide range of commercial use cases.
However, electric vans accounted for just 7.6% of the overall market in May and 8.2% year-to-date – well short of the 16% target mandated for 2025.
The SMMT highlighted that while the Plug-in Van Grant remains a key incentive for buyers, further progress depends on the rapid development of fit-for-purpose charging infrastructure.
This includes investment in public, depot and shared hub facilities, along with faster grid connections—where wait times can stretch up to 15 years, far beyond the 2035 deadline for ending the sale of internal combustion engine vans.
A consistent approach to local planning policy was also cited as critical to easing the transition for fleets.
Mike Hawes, SMMT Chief Executive, said: “Six months of declining new van demand reflects a tough economic environment and weak business confidence – and that won’t be helped by punitive taxes such as on double-cabs that will only restrict wider growth.
“Fleet renewal with the latest, cleanest models must be encouraged so it’s positive that zero emission van uptake is rising, but with market share at just half the mandated level, it’s clear we need action to drive that uptake faster.
“Accelerating LCV-centric and affordable chargepoint rollout is the bold next step that van operators and manufacturers need now.”
