New light commercial vehicle registrations rose by 1.1% in February, with 14,641 vans, pickups and 4x4s registered across the UK, but pickup sales collapsed in the wake of punitive tax changes.

According to the latest figures from the Society of Motor Manufacturers and Traders, the modest increase marks the second rise in three months following a year-long stretch of decline. However, February remains a relatively small month in the market calendar, typically accounting for only around 5% of annual registrations ahead of the March plate change.

Large vans drive modest market growth

The overall increase was largely driven by continued strength in the large van segment.

Registrations of vans weighing between 2.5 and 3.5 tonnes rose by 7.6% to 10,719 units, representing more than 73% of the entire LCV market during the month. Demand for vans in the 2.0–2.5 tonne category also grew strongly, rising 16.9% to 2,477 units.

Registrations of 4×4 commercial vehicles increased significantly as well, climbing 64.0% to 269 units.

The National Franchised Dealers Association (NFDA) said growth in these segments reflected the continued importance of larger vans to fleet operators.

Sue Robinson, chief executive of the NFDA, said the results were encouraging given the importance of these vehicles to businesses.

“February delivered modest growth for the LCV market, with registrations increasing slightly compared with last year,” she said.

“It was encouraging to see the strongest growth coming from the core van segments between 2.0–2.5 tonnes and 2.5–3.5 tonnes, which represent the backbone of the market and are widely used by fleets and businesses across the UK.”

Van registrations rose but pickup sales stalled

Pickup market continues to struggle

Despite overall market growth, the pickup sector remains under severe pressure.

Registrations fell by 54.9% year-on-year to just 813 units, continuing the sharp collapse that followed the government’s decision to reclassify most double-cab pickups as cars for benefit-in-kind and capital allowance purposes.

The change has dramatically altered the tax position for many business buyers, and the February figures suggest the market has yet to stabilise following the policy shift.

The steep decline follows a surge in registrations during early 2025 as buyers rushed to purchase vehicles ahead of the tax changes.

Electric van demand grows but still far behind target

Battery electric van registrations rose sharply in February, increasing 42.2% year-on-year to 2,009 units when including heavier electric rigids.

That pushed BEV market share to 13.5%, a notable improvement but still significantly below the 24% target required under the UK’s zero-emission vehicle mandate for 2026.

Diesel-powered vans remained dominant, accounting for almost eight in ten registrations under 3.5 tonnes.

Year-to-date figures remain down

Across the first two months of the year, the UK LCV market recorded 32,203 registrations, down 3.9% compared with the same period in 2025.

Electric van demand over the same period increased by 33.9% to 3,853 units, although their overall share of the market remains at just 11.8%.

Industry bodies say measures such as the extension of the Plug-in Van Grant to 2027, the new Depot Charging Scheme and proposed planning reforms for charger installations could help support the transition.

However, manufacturers continue to warn that demand for electric vans remains significantly behind regulatory targets.

Commenting on the figures, SMMT chief executive Mike Hawes said the market’s modest recovery was welcome but highlighted ongoing challenges.

“The van market’s modest growth in February is welcome, as is another month of rising demand for electric models,” he said.

“Pickup registrations, however, continue to lag given last year’s fiscal changes, while EV uptake remains far below the level required by regulation despite more than half of all models being available as EVs.”

Phil Huff
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