January Sees Drop in LCV Registrations Despite Growth in Large Vans and EVs

“January marks a disappointing start to the year, with a 7.8% decrease in registrations. The decline in double-cab pick-up sales was expected, following strong demand in early 2025 due to changes to benefit-in-kind taxation. A positive for January was the 10% growth in large vans between 2.5 and 3.5 tonnes. These are the backbone of the market and are often purchased by large fleets as their workhouse LCV, which may indicate future confidence in this model sector” 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 17,562 new vans, pickups and 4×4s, representing a -7.8% decrease compared with January 2025.

Registrations by segment showed a mixed picture. Pick-ups recorded the largest decline, falling to 1,206 units from 2,807 last year (-57.0%). Small vans up to 2.0 tonnes declined to 402 units (-39.8%), while vans in the 2.0–2.5 tonne category dropped to 2,547 units (-27.4%). In contrast, larger vans between 2.5–3.5 tonnes increased to 12,696 units (10.0%) and 4×4 registrations also rose to 711 units (33.9%).

Demand for battery electric vans (BEVs) increased in January, with 1,639 BEVs under 3.5 tonnes registered, up 22.3% compared with last year. When combined with BEV rigids, total electric LCV registrations reached 1,844 units, accounting for 10.4% of the monthly market share. Diesel-powered vehicles continued to dominate the market, representing 81.5% of sub-3.5 tonne registrations.

Sue Robinson added: “The LCV market is in flux as it transitions towards electrification. While registrations are increasing, they remain a long way below last year’s ZEV mandate target of 16%. With the target rising to 24% from January, current demand does not indicate this is likely to be achieved without further market stimulation and greater confidence among van users that operating electric commercials is viable for their business.”