Van market ends summer with a return to growth

07.09.2024

SMMT NEW VAN REGISTRATIONS

5 September 2024 (data for August 2024)

Hi-res charts available via Dropbox:
https://www.dropbox.com/scl/fo/15nusuja708iwcyle1qov/ALa0ngvWTYh2R5P1MFWKhuA?rlkey=yqv38t776ja0g30l1xtzmstqw&st=02974xnu&dl=0

  • New light commercial vehicle registrations grow 1.7% in August to 16,575 units in best performance for the month since 2021.
  • Demand continues across all van segments, while 4x4s and pick-ups record declines.
  • EV uptake declines for fifth month this year, dropping -30.3% and highlighting need to bolster confidence, maintain fiscal support and roll out van-suitable charging.

Thursday 5 September 2024 The UK’s new light commercial vehicle (LCV) market returned to growth in August, rising 1.7% to record the best performance for the month since 2021 after two months of decline.1 According to the latest figures published today by the Society of Motor Manufacturers and Traders (SMMT), 16,575 vans, 4x4s, pickups and taxis joined the road in what is traditionally a low volume month ahead of September’s plate change.

The market for smaller-sized vans, weighing up to and including 2.0 tonnes, continued to increase, up 24.5% to 427 units as new models drove demand. Registrations of medium-sized vans, weighing greater than 2.0 to 2.5 tonnes, grew by 1.9% to 2,771 units, while those of the largest vans, weighing greater than 2.5 to 3.5 tonnes, increased by 1.8% to 11,753 units, remaining the most popular segment with a 70.9% market share. Deliveries of 4x4s and pickups, meanwhile, declined by -12.9% and -2.5% respectively to make up a combined 1,624 units.

Despite the overall market growth, battery electric van (BEV) registrations fell for a third successive month this year and fifth time overall,2 with 908 registered, down -30.3% year on year.3 BEVs accounted for just 5.5% of all new vans in August, a fall from 7.9% in August 2023. Over the year-to-date, volumes have fallen by -9.5% and market share has declined to 5.1% – essentially half the 10% zero emission vehicle mandate target, despite increasing numbers of manufacturers introducing all-new zero emission vehicles to expand operator choice.4

Year-to-date, the van market is up 2.7% to 218,884 units, with all segments recording growth.

Mike Hawes, SMMT Chief Executive, said, “A return to growth for Britain’s new van sector is encouraging as the market continues its post-Covid recovery. Manufacturers continue to produce a range of new models, with many of these zero emission. However, such a significant and sustained drop in demand for electric vans is of deep concern given the ambitious and mandated sales targets required this year and beyond. There is a pressing need to stimulate operator confidence which means providing long term certainty over the Plug-in Van Grant, maintaining fiscal incentives, and accelerating the rollout of van-suitable charging infrastructure. Without these measures, the ability of the UK to meet its net zero goals while driving economic growth will be put under pressure.”


Notes to editors
1 CV registrations, August 2021: 20,582 units
2 CV registration declines: June 2024: 1,476 units (-16.8%) and July 2024: 1,368 units (-8.1%)
3 Battery electric van registrations, August 2023: 1,303 units
4 Data reflects the Vehicle Emissions Trading Scheme with BEV vans weighing >3.5-4.25t contributing towards each manufacturer’s target, in addition to LCVs ≤3.5t.

About SMMT and the UK automotive industry
The Society of Motor Manufacturers and Traders (SMMT) is one of the largest and most influential trade associations, representing the automotive industry in the UK.

The automotive industry is a vital part of the UK economy, integral to growth, the delivery of net zero and the UK as a global trade hub. It contributes £93 billion turnover and £22 billion value added to the UK economy, and invests around £4 billion each year in R&D. With 198,000 people employed directly in manufacturing and some 813,000 across the wider automotive industry. Many of these automotive manufacturing jobs are outside London and the South-East, with wages that are around 13% higher than the UK average. The sector accounts for 12% of total UK exports of goods, with UK-produced vehicles traded globally, generating £115 billion of trade in total automotive imports and exports.

The UK manufactures almost every type of vehicle, from cars, to vans, taxis, trucks, buses and coaches, as well as specialist and off-highway vehicles, supported by more than 2,500 component providers and some of the world’s most skilled engineers. In addition, the sector has vibrant aftermarket and remanufacturing industries. The automotive industry also supports jobs in other key sectors – including advertising, chemicals, finance, logistics and steel.

More detail on UK Automotive available in SMMT’s Motor Industry Facts publication at
www.smmt.co.uk/reports/smmt-motor-industry-facts/

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