July continues eight-month consecutive decline for new LCV market

“July’s figures have seen the new light commercial vehicle market decline for the eighth consecutive month, reflecting ongoing pressure on demand and economic uncertainty” 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 July, light commercial vehicle (LCV) dealers registered a total of 23,433 new vans and light commercials, reflecting a -5.1% decrease compared with the same month last year. This marks the eighth consecutive monthly decline in registrations, as demand has continued to fall steadily throughout 2025.

Demand was particularly weak in pickup segment, with registrations down -17.3% at 1,897. This was not unexpected as the change in the users benefit-in-kind taxation now classes these vehicles as company cars.

Vans under 2.0 tonnes sharply decreased by -20.6%, while 4x4 LCVs increased slightly by 0.5%. Additionally, vans between 2.0–2.5 tonnes were up 2.5%. Those over 2.5–3.5 tonnes, the largest sector, fell by -4.6%. This reflects the large fleet buyers lack of confidence for growth of the economy going forward, as these heavy van registrations represent 64.5% of all LCVs sold.

Conversely, BEV demand increased by 72.6% to 2,442 in July, totalling eight months of consecutive growth. In the year to date, BEVs represent 8.8% of the overall market, 16% away from the mandated target.

Sue Robinson concluded: “Although this decline is not the worst seen this year, it is still of major concern that the light commercial vehicle sales is seen as a barometer of the strength of the economy and year to date LCV registrations have decline at -11.3%.”