This week, SMMT published its latest UK market figures for new light commercial vehicles which show a mixed picture in February, with fewer than 14,500 registered, down -19.3% on the same month last year. It is the third consecutive monthly decline and the lowest February total since 2020.
There was robust uptake of LCVs up to two tonnes, rising by more than a half year-on-year, but all other segments contracted. Further decline in demand for pick-ups is a particular concern given fiscal measures to tax double cabs as cars, for benefits in kind and capital allowance purposes, which will further constrain deliveries from April. Indeed, the change will likely impact vital sectors including farming, utilities, construction and sole traders that depend on these industry workhorses. SMMT and the National Farmers’ Union are continuing to engage with government.
More positively, the very greenest part of the sector grew in February with uptake of battery electric vans (BEVs) – those weighing up to 4.25 tonnes – rising by half to more than 1,400 units. It means the BEV market share climbed to 9.7%, nearly four percentage points higher than last year but well below the 16% required by the Zero Emission Vehicle Mandate in 2025.
Industry awaits government’s response on the consultation in the coming months but there is a clear need to incentivise electric LCV demand. The continuation of the Plug-in Van Grant beyond April is a positive if necessary step, however, that alone is currently not proving to be enough to drive the zero emission uptake needed, which is significantly higher than current natural market demand.
There are more than 30 different zero emission van models currently available which, with more set to debut at the Commercial Vehicle Show in April, gives operators a huge range of choice. Further action is needed to encourage operators to switch at the pace mandated, with ambitious market support that is just as bold as its regulation. Ramping up public LCV-suitable charging infrastructure is critical to make running a van fleet on zero emissions more commercially viable.
Government plans to accelerate legislation to remove the five-hour training requirement for BEVs weighing between 3.5 and 4.25 tonnes, meanwhile, will help given the extra training has been a barrier to the market for these green vans, which are often converted into minibuses for schools, colleges and charities.
We need proactive policymaking in 2025, as every lever must be pulled to turn the UK’s world-leading LCV decarbonisation timeline from regulatory ambition to commercial reality.
