The UK market for new light commercial vehicles (LCVs) experienced a decline for the fourth consecutive month in March 2025, with deliveries down by 3.2%.
According to the Society of Motor Manufacturers and Traders (SMMT), 51,221 vans, 4×4s, and pick-ups were registered.
The trade body attributed the decline to weak business confidence impacting investment in new models.
The largest vans saw a 10% decrease in registrations, with 32,025 units accounting for 62.5% of the market.
Medium-sized vans and 4×4s also reported declines of 8.5% and 18.9%, respectively.
However, demand for smaller vans increased for the 13th month, soaring by 60.8% to 1,585 units, capturing 3.1% of the market. In addition, pick-up registrations surged by 40.6% in March, with 8,107 units joining UK roads.
This increase is driven by businesses investing in these vehicles ahead of fiscal measures affecting double-cabs, which will be treated as cars for benefit-in-kind and capital allowance purposes from April.
The SMMT urged the UK Government to delay these fiscal measures for at least one year, citing potential negative impacts on sectors contributing to economic growth.
These measures could deter investment, keeping older, more polluting vehicles on the road and reducing tax revenues.
Despite these challenges, demand for battery-electric vans (BEVs) weighing up to 4.25t grew for the sixth consecutive month, with a 40.3% increase to 4,215 units.
BEVs now represent 8.3% of the market in the first quarter of 2025, thanks to significant manufacturer investment.
The Plug-in Van Grant remains crucial in supporting BEV uptake, though current levels are below the government’s 16% zero-emission market share mandate for 2025, the SMMT said.
To achieve this target, urgent action is needed to enhance LCV infrastructure and implement effective regulations.
SMMT CEO Mike Hawes said: “Vans, pick-ups and 4×4s are critical for business operations across the UK so four months of falling investment is concerning and reflects weak confidence, with further constraints set to impact the pick-up segment.
“It is positive, however, that electric uptake continues to rise thanks to growing model choice. Even so, with demand still well below 2025 ambitions, suitably bold plans for infrastructure rollout and workable regulation are needed to grow operator confidence and the investment that is needed.”
In contrast, the UK’s new car market saw a 12.4% growth last month with 357,103 units, marking the best March performance since 2019.
“UK van market declines for fourth straight month, reports SMMT” was originally created and published by Motor Finance Online, a GlobalData owned brand.
