LCV MARKET DECLINES BY -20.5% IN JANUARY, EV UPTAKE RISES FOR FOURTH CONSECUTIVE MONTH

January sees a disappointing start to the new year for light commercial registrations following a strong market throughout 2024” said Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA), which represents franchised car and commercial vehicle retailers in the UK commenting on the latest SMMT’s new van registration figures.

In January, Light Commercial Vehicle (LCV) dealers registered a total of 19,050 new vans and light commercials, a decrease of -20.5%.

The heavier sectors of LCVs saw declines, with 2.0-2.5t sized vans dropping to 3,507 units from 5,040 units, a -30.4% decrease. The heavier, and most popular sized vans (2.5-3.5t) also saw a drop to 11,537 units from 14,839 units, a -22.3% decrease.

January’s registration figures saw a rise in the number of battery electric commercials registered under 3.5t, up 13.0% to 1,340 units representing 7.0% of the total market share.

Sue Robinson added: “The 2.5-3.5t van segment, which accounts for over 60% of all sub-3.5 tonne commercial sales and largely consists of bulky vehicles used for delivering consumer goods, is often a strong indicator of market confidence. Therefore, the decline in this sector is particularly disappointing.

“While the 7.6% market share for BEV commercials is encouraging, it remains well below the 16% ZEV target for light commercial vehicles this year—especially concerning with fines for each non-compliant van set to double from £9,000 to £18,000. Another important area to monitor is the upcoming Benefit-in-Kind tax changes for double cab pick-ups in April, which already seem to be influencing the market.

“The Government needs to recognise the importance of expanding the availability of faster, size-appropriate charging points for commercial vehicles. This is essential to provide light commercial operators with a practical incentive to transition to zero-emission vehicles without placing them at a financial disadvantage."