New light commercial vehicle (LCV) registrations shrank by just over 12% (to 156,048 units) in the first half of 2025, according to the latest figures published by the Society of Motor Manufacturers and Traders (SMMT).
With a -14.8% drop in June, the market declined for the seventh consecutive month, rounding off the worst opening half-year performance since 2022 amid a tough economic environment and weak business confidence to invest in fleet renewal.
Year-to-date performance was led by declining demand for the largest vans (by -14.8% with 99,790 registered), as well as deliveries of medium sized vans, down -20.9% to 26,408 units.
Sales of 4x4s also fell, by -6.0% to 4,041 units. However, there was growth in demand for small vans, up 30.7%, but this could not soften the overall market decline as a lower volume segment.
Pick-ups
There was also robust uptake of new pickups in the half-year period, up 10.0% to 20,902 units, however, that obscures two consecutive months of decline following April’s introduction of new fiscal measures to treat double cabs as cars for benefit in kind and capital allowance purposes.
The change in treatment is putting additional costs on key business sectors, constraining new orders of the zero and lower emission models which are entering the market, and keeping more polluting vehicles on the road for longer.
Manufacturers continue to invest massively in cutting-edge zero emission LCVs and there are now almost 40 different battery electric van (BEV) models to choose from – up from 28 in the first half of last year.
Demand for BEVs
The market is responding, with BEV demand up 52.8% and 13,512 units registered in 2025,4 boosted by a 97.0% jump in deliveries in June. In the year to date, new BEV purchases remain at just 8.6% of the overall market, however, little more than half the 16% share mandated by government for 2025 with substantial ground to make up in the second half of the year – a gap which government must help to plug.
The Plug-in Van Grant remains a lifeline for industry, so we await further details of the ongoing support announced in the Comprehensive Spending Review.
Many businesses are still being held back, however, by a lack of access to suitable commercial vehicle charging at public, depot and shared hub locations.
Mike Hawes, SMMT Chief Executive, said, “Half a year of declining demand for new vans reflects a difficult economic climate and weak business confidence and the fact that this downturn comes just as industry invests heavily to expand its zero emission LCV offering is particularly concerning. Decarbonisation remains a shared ambition but with the EV market more than a third below this year’s target, bold measures are needed to drive demand. Accelerated CV infrastructure rollout, quicker grid connections and streamlined planning are now critical.”
