Light commercial vehicle registrations suffered another sharp decline in November, falling 22.2% year-on-year to 23,570 units, as weak business confidence and mounting cost pressures continue to suppress fleet renewal.

Latest figures from the Society of Motor Manufacturers and TradersExternal link image (SMMT) show that the slowdown now extends across almost every sector of the LCV market, leaving total registrations for the first 11 months of 2025 down 11.4% compared with the same period last year, at 287,728 units.

While electric van demand returned to growth after October’s dip, the wider market contraction highlights the growing disconnect between government decarbonisation targets and operators’ current investment capacity.

November saw registrations decline across every major van class: Large vans were down 19.7% to 16,463 units, accounting for almost 70% of the market. Medium vans dropped by 20.5% to 3,976 units, while small vans fell 53.8% to just 462 units.

Pickups were the hardest hit for the second month running, with registrations down 34.8% to 1,964 units, following fiscal changes that now treat double-cab pickups as cars for benefit-in-kind and capital allowance purposes.

The industry has repeatedly warned that the reclassification is already freezing fleet renewal in construction, utilities and rural sectors, while also keeping older, less efficient vehicles on the road for longer.

Electric van demand rebounds, but mandate gap remains huge

Against the wider market decline, battery-electric van (BEV) registrations rose 25.3% in November to 2,909 units, giving EVs a 12.3% monthly market share — the highest so far this year.

Year-to-date, electric van registrations are up 44.7% at 27,159 units, yet the overall EV market share sits at just 9.4%, well adrift of the government’s 16% ZEV mandate requirement for 2025.

With that target rising to 24% in 2026, the gap between policy ambition and real-world fleet adoption is widening rapidly.

“Lacklustre light commercial vehicle uptake highlights weak economic confidence, and slower fleet renewal means slower decarbonisation,” commented Mike Hawes, SMMT chief executive. “While it is encouraging that zero-emission van uptake is rising, the pace of change severely lags government ambition, and every lever must be pulled to support demand and protect industry investment.”

Matt Hawkins, head of Flexis in the UK, said the figures show clear momentum for electric vans despite the wider downturn: “The latest SMMT figures confirm that 2025 has been a standout year for electric vans, with new eLCV registrations rising sharply by 45.7% year-on-year and gaining market share.

“This strong performance – set against wider market uncertainty and a marked decline in overall CV registrations – underlines how businesses are increasingly recognising the operational, cost and environmental advantages of going electric,” added Hawkins.

However, he warned that infrastructure and policy uncertainty are still acting as a brake on mass adoption.

Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA), pointed directly to Budget uncertainty as a key factor behind the November slump: “A disappointing month for light commercial registrations, due to a lack of future business confidence and concerns over possible additional business costs incurred in the recent Budget.

“The year-to-date electric market share is just 9.4%, compared with the current ZEV mandate of 16%. Next year’s 24% target looks very unlikely to be reached.”

With just one month of 2025 remaining, the UK is set to enter 2026 with weaker fleet renewal, a shrinking pickup market and an electric van adoption rate that remains structurally below policy ambition.

Without rapid intervention on infrastructure, grid capacity and fiscal certainty, industry leaders warn that the gap between what the government requires and what operators can realistically deliver will continue to grow.

Phil Huff
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