UK van market shrinks but electric sales are up

The contraction means volumes have fallen every month this year. August is generally the smallest volume month ahead of ‘new plate’ September and this month’s decline translated to 2,210 fewer registrations than last year and 111 less than the other pre-plate change month of February.

Demand fell across every segment in August. Registrations of the largest vans declined 11.5% to 10,398 units – albeit still accounting for 72.4% of the overall market – while deliveries of medium-sized vans fell by 14.0% to 2,383 units. New pickup registrations saw the largest percentage drop, down 25.8% to 1,040 units, impacted by recent fiscal changes to reclassify double-cab pickups as cars for benefit-in-kind and capital allowance purposes since April. The lower-volume small van and 4x4 segments also declined, down 17.6% and 13.9% to 352 and 192 units respectively.

Reflecting their commitment to deliver government ambition, manufacturers continue to invest heavily in battery electric van (BEV) models, with over 40 options now available. The market is responding positively, with more than double (109.5%) registered compared with August last year – growth that pushed volumes to 1,902 units and market share to a new monthly record of 13.0%. While the overall market year to date is down 11.4%, new BEV uptake has risen by 59.9% – to comprise 9.1% of the overall market. However, that share remains some distance below the 16% mandated target, highlighting the need to increase market confidence.

Mike Hawes, SMMT chief executive, said: “August is conventionally a low volume month for the new LCV market so while the continued decline is disappointing, the focus is on September to deliver the fleet investment and growth that would reflect a healthy business environment. A thriving market is also essential for de-carbonisation, given the vast choice of electric van models already available to suit almost every need. Manufacturers need greater volumes to ensure investment in innovation continues unabated.”