The UK’s new light commercial vehicle (LCV) market faced a challenging year in 2025, as economic pressures and cautious fleet investment led to an overall decline in registrations. However, the sector continued to invest heavily in the transition to net zero, with strong growth in electric van availability and uptake.
Latest figures from the Society of Motor Manufacturers and Traders (SMMT) show total registrations fell by 10.3% to 315,422 vans, pickups and 4x4s. Fleet renewal declined throughout most of the year, reflecting weaker business confidence, despite a modest uplift in December.
Medium and large van registrations were down 20.7% and 9.8% respectively, with large vans remaining the dominant segment at two-thirds of the overall market. Pick-ups also ended the year slightly lower, following early demand ahead of changes to benefit-in-kind taxation. In contrast, smaller van and 4x4 segments recorded modest growth, indicating more resilient demand at the lower end of the market.
Despite the contraction in overall volumes, progress towards zero-emission mobility continued. Battery electric van registrations rose by 36.2% to a record 30,169 units, supported by significant manufacturer investment and the availability of more than 40 zero-emission van models — now accounting for over half of all new van choices.
However, electric vans accounted for just 9.5% of the total market in 2025, well short of the 16% share mandated for the year. Manufacturers have continued to subsidise electric van sales, with almost £400 million in discounts applied, highlighting the ongoing gap between regulatory ambition and real-world demand.
Barriers to wider adoption remain, including higher vehicle costs, limited public charging suitable for vans, and lengthy grid connection times for depot charging. While recent government measures - including the extension of the Plug-in Van Grant and support for depot charging - are expected to help, the steep increase in mandated electric van targets to 24% in 2026 will require further action.
Commenting on the figures, SMMT chief executive Mike Hawes said the market reflects “a tough economic environment which constrained fleet investment”, adding that while electric van growth is encouraging, “the gap between market regulation and reality will continue to widen” without additional support.
As the UK commercial vehicle sector balances economic headwinds with accelerating decarbonisation targets, the focus is increasingly shifting towards practical solutions that can unlock demand and enable fleets to transition at scale.
