This week SMMT published the UK’s annual 2024 registration figures for new light commercial vehicles (LCVs) with the good news that more than 350,000 vans, pick-ups and 4x4s joined the road last year. That’s up 3.0% on the previous year and even though this is only a slight increase, it is growth compared with a very successful 2023 which saw a backlog of orders being delivered after the pandemic.
EV uptake also grew by 3.3% with 22,155 registered last year, representing 6.3% of the overall market – the same proportion as in 2023. It means the UK was some distance off the 10% target set out in the Vehicle Emission Trading Scheme (VETS), otherwise known as the Zero Emission Vehicle Mandate. The shortfall came despite manufacturers collectively investing billions in new zero emission vehicles, with the van sector now offering a huge range – 33 different models available for operators to choose from, more than half of all van models available.
A diverse EV offering was a key factor in driving EV growth but a tough investment environment, with EVs remaining stubbornly more expensive to make and therefore buy than had been expected when the mandate was first designed, as well a continued dearth of van-suitable chargepoint infrastructure, is preventing more fleet operators from switching.
SMMT has made clear that the mandate, which is targeting EV uptake ahead of natural market demand, can only be as ambitious as the support provided for it. Industry is doing all it can but government and other stakeholders must pull every lever to make the regulation a success.
The pick-up sector is also facing a significant challenge with a -8.3% drop last year that could fall much further in 2025 due to plans to tax double-cabs as cars for benefit in kind and capital allowances purposes from April this year. SMMT is continuing to work with our members and the National Farmers Union – which represents one of the many crucial industries which depend on the pick-up sector – and we urge government to uphold HMRC’s decision in February to treat double-cab pick-ups as commercial vehicles.
Businesses already face a tough investment environment in 2025 and the tax hike will bring considerable additional cost, meaning many could hold off investing in pick-ups as a result, reducing tax revenues and keeping more polluting vehicles on the road.
For both the EV and pick-up sectors, it is crucial this year that every potential barrier for fleet renewal is removed, so the commercial vehicle sector can deliver the growth and decarbonisation which government needs.
