The UK’s new light commercial vehicle (LCV) market has declined every month so far in 2025, with June registrations falling by 14.8%, according to the Society of Motor Manufacturers and Traders (SMMT).
The first six months of the year saw overall new van registrations drop by 12.1% to 156,048 units.
The decline marked the weakest start to a year since 2022 and followed a prolonged period of growth across 2023.
According to the SMMT, the downturn reflected reduced business confidence and the economic challenges facing operators.
Medium-sized vans weighing greater than 2.0 to 2.5 tonnes saw the steepest fall, down 20.9% to 26,408 units, while the largest sector — vans between 2.5 and 3.5 tonnes — declined 14.8% to 99,790 units.
Small vans, however, bucked the trend with a 30.7% increase, though this segment accounts for just 4,907 units.
Battery electric van (BEV) uptake remained a rare bright spot, rising 52.8% in the first half of the year to reach 13,512 units.
BEVs now represent 8.6% of the total LCV market.
However, the figure remains well short of the 16% market share required under the government’s Vehicle Emissions Trading Scheme for 2025.
Pick-up registrations were also up in the first half of the year, rising 10.0% to 20,902 units.
However, the impact of tax rule changes applied in April — which saw double-cab pick-ups reclassified as cars for benefit-in-kind purposes — has been evident in recent months.
Registrations in this category fell in both May and June.
Mike Hawes, SMMT Chief Executive, said: “Half a year of declining demand for new vans is cause for concern, especially given the essential role they play across the economy.
“While the wider economic challenges facing operators are undoubtedly having an impact, urgent action is required to stem further declines.
“Accelerated CV infrastructure rollout, quicker grid connections and streamlined planning processes are now critical.
“Without these measures, the UK will struggle to meet its green targets, its urban air quality goals and its economic growth ambitions.”
The SMMT emphasised that the Plug-in Van Grant remains vital for ongoing BEV uptake.
However, it also noted significant concerns around charging infrastructure — particularly the need for depot and destination charging, faster grid connections, and nationwide reliability.
Some fleets have reported grid connection delays of up to 15 years.
The organisation said action is needed to support long-term LCV market recovery and ensure that BEV adoption can progress in line with regulatory targets.
