The UK’s new light commercial vehicle (LCV) market rose by 3.0% to surpass 350,000 registrations in 2024, according to the latest figures published today by the Society of Motor Manufacturers and Traders (SMMT). A robust December with 27,221 new LCVs registered rounded off a total of 351,834 new vans, pick-ups and 4x4s across the year – making 2024 the best year of fleet renewal since 2021.1
Demand grew in every van weight class last year, with uptake of the largest vans up 2.1% to represent 66.3% of the market. New registrations of medium and small sized vans also grew, up 12.3% and 44.5% to 65,148 units and 8,606 units respectively. Deliveries of new 4x4s, meanwhile, declined by -9.7% to 7,282 units in comparison with a strong 2023 performance, with volumes naturally fluctuating in smaller volume sectors.
A cause for serious concern, however, is the -8.3% drop in new pick-up registrations to 37,582 units – a volume which could fall significantly further in 2025 following government’s decision to tax double-cabs as cars for benefit in kind and capital allowances purposes from April this year. Key businesses which depend on these vehicles, from farming and construction to utilities and sole traders, will face considerable additional costs and could hold off investing as a result – keeping more polluting vehicles on the road and, counterproductively, reducing tax revenues.2
A tough investment environment also persisted in the battery electric van (BEV) sector. While new BEV registration volumes rose by 3.3% to 22,155 units, the share of the overall market was 6.3% – the same as in 20233. Such incremental growth in uptake in the first year of the UK’s ambitious Zero Emission Vehicle Mandate reflects the immense challenge ahead to accelerate the decarbonisation of light commercial vehicles.
Vast manufacturer investment means UK operators had 33 different zero emission van models to choose from last year, more than half (52.4%) of all new models available, with an EV for every business need.4 The breadth of choice is in stark contrast, however, with the paucity of van-dedicated public chargepoints, which is undermining fleet confidence in the commercial viability of going electric. With uptake remaining significantly short of the 10% target for 2024 set by government’s Zero Emission Vehicle Mandate, even if, as industry expects, demand rises by more than 85% in 2025, the UK’s BEV share would reach just 10.6% – a significant distance off the 16% required this year.
With market demand for BEVs far below expectations when the mandate was designed, government must fast-track the review and ensure the regulation reflects market realities, barriers and the support necessary to drive such growth. Indeed, ambitious regulation must come with equally ambitious incentives and infrastructure rollout – else investment, model choice, growth and decarbonisation will be compromised.
Mike Hawes, SMMT Chief Executive, said,
Vans, 4x4s and pick-ups keep businesses everywhere on the move, making this sector a barometer of the UK economy. The best overall volume in three years, therefore, is good news with van makers striving to deliver abundant and competitive EV choice. Buyer confidence, however, will inevitably be undermined when charging infrastructure does not meet the needs of fleet operations. A review of EV regulation is crucial, therefore, to reflect current market realities and ensure ambitions are deliverable, without any negative and costly consequences.
1 UK new LCV registrations, 2021: 355,380 units.
2 SMMT and the National Farmers’ Union (NFU) have written a joint letter to the Chancellor urging government to uphold HMRC’s decision in February to treat double-cab pick-ups as commercial vehicles.
3 SMMT’s BEV LCV registration data reflects the Vehicle Emissions Trading Scheme, in which BEVs weighing >3.5-4.25t contribute towards each manufacturer’s target, in addition to those weighing ≤3.5t.
4 33 electric LCV models available; 63 LCV models available in total. 132 electric car models available; 381 car models available in total.
SOURCE: SMMT
