The UK’s new light commercial vehicle (LCV) market continues to soften into 2026 with January registrations down -7.8% to 17,562 units, the latest SMMT data published today shows. It marks the weakest start to a year since 2012 and reflects fragile business confidence across core van‑buying sectors.
The most significant drag is being faced by the pickup segment, with registrations plunging by -57.0%, following government fiscal changes that now treat double‑cab pickups as cars for benefit‑in‑kind and capital allowance purposes. Industry had warned the measure, introduced in April last year, would severely discourage investment given the additional costs it places on buyers – constraining fleet renewal in key sectors such as farming, construction, utilities and sole traders.
A weak overall market was reflected by a declines in medium and small vans, by -27.4% and -39.8% respectively, with segment growth only for large vans (10.0%) and 4x4s (33.9%). There was improvement elsewhere in January with electric van uptake rising 26.0% year‑on‑year, with 1,825 registrations representing a 10.4% market share – albeit well below the mandated 24% ZEV target for 2026.
Manufacturers continue to invest substantially to provide impressive ZEV model availability, with more than half of all new vans available as zero emission – while at the same time offering unprecedented discounts on their sale to meet mandated ambition. The extension of the Plug‑in Van Grant until 2027 – as part of government’s wider £650 million Plan for Change – is imperative but clarity is urgently needed on the scale, timing and conditions of the grants support. Major ongoing challenge persist elsewhere, however, including include stubbornly high EV production costs, insufficient van‑suitable public charging, and slow grid‑connection times for depot infrastructure.
With the latest outlook for the new LCV market across 2026 having been revised downward to 321,000 units, representing a slight 1.9% increase – with ZEVs expected to claim a 13.1% share – further action is needed to ensure the UK’s world-leading ambition for rapid decarbonisation is viable for manufacturers and fleet operators.
The recent Depot Charging Scheme, which was oversubscribed, will help along with planning reforms to accelerate private charger installation, but meeting the steep ZEV targets set for 2026 requires still more support.
Transitioning the workforce is also crucial for decarbonisation and the sector is investing in the future workforce, which we will hear about during National Apprenticeship Week from 9-13 February when SMMT hosts its annual parliamentary Apprentice Showcase. More on that in next week’s newsletter.
