Light commercial vehicle (LCV) registrations fell by 20.5% in January 2025, with 19,050 vans, pickups and 4x4s registered that month, according to figures published by the Society of Motor Manufacturers and Traders. This decline follows a strong 2024, and reflects a tougher economic climate and reduced business confidence.
All categories, with the exception of small vans (up to 2t), showed reduced demand. Large vans reduced the most by quantity, with a drop of 22.3% from 23,962 to 19,050 units, when comparing year-to-date numbers.
Small van registrations almost doubled, moving from 352 in January 2024 to 668 this year.
One positive is that the battery electric vehicle (BEV) registrations have increased significantly year-on-year. 1,340 BEVs were registered in January 2025, compared to 1,186 in January 2024, showing an increase of 13%. This has increased the market share to 7.0%, up from 4.9%, which is a strong start to the year.
Current projections expect BEV volumes to reach 10% this year, and while this is an improvement over 2024, it falls short of the mandated target of 16%. Further work is required from the government to push electric infrastructure if this target is to be reached.
Mike Hawes, SMMT Chief Executive, said, “The van market has enjoyed a bullish performance over the past two years but, amid a tough economic environment, businesses are under pressure. It means action is needed to drive fleet renewal and back the industry which has invested massively to produce new EV models. The mandate review must, therefore, deliver workable regulation that reflects market realities, and ensure infrastructure rollout that makes fleet decarbonisation a commercially viable, compelling proposition.”
