Today, SMMT published the November registration figures for light commercial vehicles, with 30,300 new vans, pick-ups and 4x4s registered. It was the second biggest November in history for the market and its fourth consecutive month of growth as registrations rose by 10.5% in November. Year to date, 324,613 LCVs have been registered, which is up 4.1% on last year.
While this is good news, the announcement from government that double-cab pick-ups are set to be taxed as cars for benefit in kind and capital allowances purposes after April 2025, is a concern for businesses that rely on these vehicles, in construction, farming, utilities and the self-employed.
Electric van uptake grew for the second consecutive month after four months of decline, rising by more than a third (36.7%) to 2,322 units but the overall electric van market is still only at 7.7%, below the 10% sales quota targets set under the Vehicle Emission Trading Scheme (VETS), otherwise known as the zero emission vehicle mandate.
Whilst the Plug-in Van Grant is helping, VETS is creating significant challenges for the industry as OEMs seek to maintain compliance with targets that are well above the level of natural business demand for zero emission vans. Last week at SMMT’s Annual Dinner, Department for Business and Trade Secretary of State, Jonathan Reynolds acknowledged the industry challenges and set out government’s commitment to consult and work in partnership with industry to ease the regulatory burden as a matter of urgency.
Last week SMMT also published industry’s latest market outlook which expects the LCV market in 2024 to total 352,000 units, representing growth of just over 3% compared to 2023’s 341,455 units. The market is expected to improve modestly in 2025 to 355,000 units before returning to pre-Covid 2019 levels in 2026, at 366,000 units. The outlook for BEVs up to 3.5T, meanwhile, is a flat market this year at 20,000 units and a 5.7% market share. However, significant growth is anticipated with the introduction of more new models in 2025 and 2026, rising to 38,000 units and a 10.6% share next year next year, against a mandated target of 16%. It is expected to further increase to 62,000 units and a 16.9% share in 2026, when there is a VETS a target of 24%.
Massive industry investment means that half of all van models are now available as zero-emission, providing operators with a huge choice. We now need to see government’s commitment to “fast track” the required consultation process on VETS as soon as possible, and a clear plan for a national network of van-specific chargepoints, to provide confidence to van operators big and small to switch in greater volumes.
