Things aren’t getting any easier for the UK van market. According to the latest update from the Society of Motor Manufacturers and Traders (SMMT), May 2025 saw another dip—this time down 11.8% in light commercial vehicle (LCV) registrations. In total, 22,796 vans, pickups, and 4x4s were registered that month, continuing a slide that’s now stretched to six straight months.
Van Market Continues Downward Slide
If you thought April’s 14.9% drop—the worst since 2020—was a one-off, May didn’t offer much relief. Sure, the fall wasn’t quite as steep, but this 11.8% dip still paints a pretty clear picture: businesses aren’t rushing out to replace vehicles. With everything costing more to run and rules always seeming to be in flux, it’s no wonder people are thinking twice.
Big vans are usually the backbone of the market, making up about 60% of new van sales, but they were hit hardest again. Registrations there dropped 22.9% in April, and they led the decline again in May. Medium vans didn’t escape either, falling 9.2% compared to last year—so it’s definitely affecting all shapes and sizes.
What’s Behind the Drop?
SMMT’s take on the situation? It’s a mix of factors piling on:
– The economy’s still shaky, so businesses are holding back on big purchases
– Confidence among fleet operators and small businesses isn’t exactly soaring
– Recent tax tweaks—especially how double-cab pickups are now viewed when it comes to benefit-in-kind and capital allowances—have made things trickier (and costlier), especially for folks in construction and farming
Electric Vans Show Resilience—but Still Lag Targets
There is one glimmer of decent news—battery electric vans (BEVs) are holding their own. Back in April, they actually jumped 77.5% in sales to 1,686 units. That bump brought their market share up to 8.3%, which is double what it was the year before. May slipped back slightly to 7.6%, but at least BEVs are still on the up.
These days there are nearly 40 different electric van models available in the UK, which definitely helps. And with manufacturers putting a lot into tech and running cost savings becoming more obvious, people are starting to take notice.
Market Response: New Electric Models Emerge
Even with all the uncertainty, van makers are still rolling out new electric options. Kia’s just jumped into the UK van game with the all-electric PV5, which opened for pre-orders on 1 May 2025.
With much of 2025 still to come, attention now turns to how government policy—especially around emissions regulations and taxation—might influence the van market. Questions remain about the real-world impact of tax changes on van sales and whether electric vans are on track to meet annual targets.
While diesel is clearly in decline, the progress on electrification offers some optimism. However, for the van sector to grow sustainably and contribute meaningfully to Net Zero goals, broader support will be required—not just from buyers, but from government, industry stakeholders, and infrastructure providers alike.
