The UK’s new van market declined for the eighth consecutive month in July, with registrations down 5.1% year-on-year to 24,433 units, according to the latest data from the Society of Motor Manufacturers and Traders (SMMT). The fall, attributed to weak business confidence and ongoing economic pressures, makes this the lowest July for light commercial vehicle (LCV) sales since 2022.

Almost all segments were affected, with the sharpest decline seen in the smallest vans, down 20.6% to just 738 units. Larger vans — those between 2.5 and 3.5 tonnes — remain the dominant part of the market, but also dipped 4.6% to 16,040 units. Pickups saw another steep drop, falling 17.3% to 1,897 units as the effects of April’s tax changes continue to ripple through the market. These changes reclassified most double-cab pickups as passenger cars for tax purposes, reducing their attractiveness to benefit-in-kind users.

There was some positive movement, however, with mid-sized vans (2.0–2.5 tonnes) seeing a modest 2.5% increase, while the 4×4 segment rose by 0.5%.

Electric van registrations grow, but not fast enough

Battery electric vans (BEVs) were a bright spot, with registrations up 72.6% in July to 2,442 units. That marks eight months of uninterrupted growth for electric vans, as more operators begin the shift to zero-emission vehicles.

Despite that, the overall market share for electric vans in 2025 remains just 8.8%, far short of the 16% figure required under the UK’s Zero Emission Vehicle (ZEV) mandate. The target is set to rise to 24% in 2026, but SMMT forecasts now suggest only 13.7% market share by then, with a revised 2025 projection of just 8.6%.

Manufacturers have expanded the choice of electric vans on offer, with over 40 models now available across multiple size and payload classes, but concerns remain around charging infrastructure, grid connections for depots, and planning delays for installing chargers. These issues continue to hamper confidence among operators considering the switch.

2025 outlook downgraded

In light of persistent economic headwinds, SMMT has downgraded its 2025 market forecast. Total LCV registrations are now expected to fall to 321,000 units next year, a drop of more than 30,000 compared to earlier predictions and a decline of 8.7% from current levels.

Mike Hawes, SMMT Chief Executive, said: “Eight months of LCV market decline underlines the ongoing economic pressures facing businesses, yet the sector remains steadfast in its commitment to decarbonise.

“Manufacturers continue to invest in delivering a diverse range of zero-emission vans to suit every use case, and it’s encouraging to see uptake growing – but to meet mandated targets, it must grow faster. Accelerating infrastructure rollout, streamlining planning processes and providing targeted support for fleet operators are essential to drive progress and keep the UK at the forefront of road transport decarbonisation.”

Phil Huff
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