The UK’s light commercial vehicle market contracted sharply in 2025, as van and pickup operators and manufacturers alike faced economic uncertainty, tax changes, and an accelerating push towards electrification.
According to figures published by the Society of Motor Manufacturers and Traders
, registrations of new vans, pickups and 4x4s fell by 10.3% year on year to 315,422 units. With the exception of a modest 1.7% uplift in December, demand weakened throughout the year, reflecting delayed fleet replacement and cautious investment decisions across much of the business sector.
The decline in 2025 was driven largely by weakness in the heart of the market. Medium-sized vans in the 2.0–2.5t category recorded one of the steepest falls, with registrations down 20.7% to 51,639 units. Large vans between 2.5 and 3.5 tonnes also declined, dropping 9.8% to 210,262 registrations, although they remained the dominant segment, accounting for around two-thirds of all new LCVs.
By contrast, smaller and more niche segments proved more resilient. Pickups ended the year down just 0.7% at 37,308 units, while 4×4 registrations rose 2.3% to 7,447 units. Small vans under 2.0t also edged up 1.9% to 8,766 registrations, while BEV vans between 3.5 and 4.25 tonnes rose 44.6% to 2,380 units. Together, these gains helped soften the overall decline, but they were not enough to offset the downturn in the core working van classes.
Electric vans hit a record, but still miss the target
One of the clearest positives in the 2025 data was the continued growth of battery electric vans. Registrations rose by 36.2% to a record 30,169 units, despite the wider market contracting. More than 40 zero-emission van models are now available in the UK, representing over half of all new van model choices.
However, EVs still accounted for just 9.5% of total LCV registrations for the year, well short of the 16% share mandated for 2025 under the ZEV framework. With the target rising again to 24% in 2026, the gap between regulation and demand is becoming increasingly difficult to ignore.
Manufacturers bridged some of that gap through heavy discounting, with industry subsidies estimated at close to £400 million over the year. Persistent barriers remain, including higher upfront costs, a lack of van-suitable public charging and long delays in securing grid connections for depot charging.
“2025’s new van market reflects a tough economic environment, which constrained fleet investment,” said Mike Hawes, chief executive of the SMMT. “While rising EV uptake is encouraging, it has come at a huge cost to industry and remains significantly adrift of ambition. Government’s upcoming review must acknowledge the unique challenges facing the light commercial vehicle sector and the additional action required, else the gap between market regulation and reality will continue to widen.”
Sue Robinson, chief executive of the NFDA, struck a positive note, saying: “It is encouraging to see growth in the heavy van segment this December, with registrations up by 806 units (+4.6%) compared with December 2024. This may indicate a degree of reassurance from the business sector that the November Budget was not as severe as initially anticipated.”
However, Robinson was clear that confidence across 2025 remained fragile, saying: “A significant amount of business confidence was lost during 2025, with many commercial buyers delaying fleet replacement decisions amid ongoing economic uncertainty. This decline was most evident in the core 2.0–2.5t and 2.5–3.5t van segments.”
She also pointed to the continued dominance of diesel, which accounted for 84.7% of van sales last year, underlining the gap between policy ambition and current buying behaviour.
Manufacturer fortunes diverge
The manufacturer league table reflects many of the same themes. Ford retained a commanding lead, registering 111,224 vehicles and accounting for more than a third of the total market. Although volumes dipped slightly, Ford’s market share increased.
Volkswagen held second place with 35,786 registrations, while Toyota emerged as one of the standout performers, growing volumes by 35.3% to 20,205 units and lifting its market share to 6.4%.
In contrast, several established players suffered sharp declines. Vauxhall, Renault, Peugeot, Mercedes-Benz and Citroen all recorded double-digit percentage falls, reflecting their exposure to the weakened medium and large van segments.
New and emerging brands such as Farizon, GWM and Kia appeared in the registration data for the first time, and it will be interesting to see where those figures go in 2026.
Looking ahead to 2026
Industry voices remain cautiously optimistic that electric vans will continue to outperform the wider market next year, even as overall volumes remain under pressure.
“December’s SMMT data highlights the success of the electric van market in 2025, with year-on-year growth hitting 35.5%,” said Matt Hawkins, head of UK operations at Flexis. “We must, however, acknowledge that the 8.7% total market share is still significantly below the ZEV mandate target of 16%, which increases to 24% for 2026. The government must demonstrate their commitment to achieving climate and clean air goals in 2026 by supporting and incentivising the transition for fleets.”
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