Van market falls as EV demand falters and pickups plummet
The UK’s new light commercial vehicle (LCV) market declined by -3.4% in March, with 49,505 vans, pickups and 4x4s joining the road, according to the latest figures published today by the Society of Motor Manufacturers and Traders (SMMT). The weakest new number plate March since 2023 is disappointing1 given the month typically delivers the highest volumes of the year, but comes amid challenging economic and business conditions.
March’s decline was driven by a sharp fall in new pickup registrations, down -54.0% to just 3,732 units – undermining the growth seen in the LCV market’s highest-volume segments. Demand for large van models rose by 8.7% to 34,805 units, and medium sized vans by 2.3% to 8,365 units, while deliveries of new 4x4s were up 41.3% to 1,871 units. Uptake of small vans, meanwhile, fell by -53.8% to 732 units following a 60.8% uplift in March last year, with such fluctuations more naturally occurring in smaller volume segments.
Waning demand for pickups rounds off a first quarter decline of -54.8% to 5,751 registrations – a shortfall of 6,967 compared with Q1 last year.2 Pickup fleet renewal continues to be discouraged by last April’s costly changes to treat double cabs as cars for Benefit in Kind and capital allowance purposes, given the importance of construction and farming to the sector. While double cab VED and VAT rules remain the same, industry is urging government to reverse the BIK measure, which is shackling businesses from purchasing the latest, most efficient models – keeping older, more polluting vehicles on the road for longer and reducing Treasury tax receipts.
March’s -15.9% decline in battery electric van (BEV)3 uptake is also a significant concern, with just 3,543 units registered and a market share of 7.1% – the weakest since September 2024.4 Diesel continues to dominate, accounting for more than eight in 10 (85.6%) new LCVs registrations. With manufacturers offering some 40 different zero emission models – more than half of all models available – the decline underlines the immense challenge of decarbonising the sector. Indeed, while BEV demand has risen by 4.3% across the first quarter of 2026, it represents only 9.0% of the overall market – just over a third of the 24% share mandated for the year.
Recent announcements such as the extension of funding for the Plug-in Van Grant until 2027, the new Depot Charging Scheme and proposed changes to planning rules for private charger installations will help as fleet confidence is constrained by the higher upfront cost of BEV purchases and depot infrastructure, as well as a paucity of LCV-suitable public charging. With natural market demand far behind mandated ambition, the sector continues to call for government to bring forward a holistic review of the van transition.
Mike Hawes, SMMT chief executive, said, “A weak March is deeply concerning given this number plate change month often sets the tone for the year. Moreover, with fleet renewal now having contracted in 14 of the past 16 months, it reflects poorly on overall business confidence. A thriving market is essential not just to economic growth but to decarbonisation, and it is increasingly alarming to see BEV demand waning when it must accelerate to reach ever-tougher mandated levels. With the transition already falling behind schedule, a holistic review of the transition is urgently needed.”
