The UK HGV market is beginning to stabilise after several years of strong demand, and while the latest registration figures highlight the challenges that remain, they also point to an industry continuing to adapt and invest for the future.
A 14.7% decline in new HGV registrations during the second quarter, bringing half-year demand down 8.9%, reflects a market normalising after a prolonged period of post-pandemic fleet renewal. With many operators having already invested heavily in fleet improvements in recent years, a plateau in demand is perhaps unsurprising. At the same time, businesses continue to navigate higher operating costs and economic uncertainty, carefully balancing replacement cycles against wider financial pressures.
The slowdown has been broad-based, affecting both articulated and rigid models, while traditionally strong segments such as tractor units, box vans and curtain-sided vehicles all recorded lower volumes. There were, however, encouraging pockets of resilience, with demand for specialist vehicles such as tippers and refuse collection vehicles increasing, reflecting continued investment in certain segments of industry.
While the transition to zero-emission HGVs remains in its infancy, there are signs of gradual progress. Registrations increased modestly during the second quarter, although the total of 90 vehicles illustrates the scale of the challenge ahead. Zero-emission HGVs accounted for 1.0% of new registrations during the quarter, while year-to-date market share held steady at 0.9%.
Much like other vehicle segments, this is not a question of manufacturer commitment. Vehicle suppliers continue to expand the range of zero-emission models available to operators, investing heavily in new technologies ahead of legislative targets. The focus now must be on creating the conditions that give operators the confidence to transition.
High purchase costs remain a significant barrier, particularly for businesses operating on tight margins, but infrastructure is arguably the greater hurdle. Long waits for electricity grid connections at depot sites, along with an underdeveloped charging network on the strategic road network, continue to complicate investment decisions, especially for operators running diverse fleets with demanding duty cycles.
Government support schemes, including the Plug-In Truck Grant, the Depot Charging Scheme and the Zero Emission HGV and Infrastructure Demonstrator (ZEHID) programme, have helped stimulate early adoption. Yesterday’s announcement by Transport Scotland of further funding for the SME Fleet Analysis Support Fund and Zero Emission Heavy Duty Vehicle Skills Challenge Fund is another positive step.
However, the latest figures show that incentives need to be matched by reform of energy networks and planning processes, alongside a clear strategy for developing a public charging network, if uptake is to accelerate at the pace required.
The industry has already demonstrated its willingness to invest, while manufacturers continue to bring new technologies to market. With sustained collaboration between industry and government to deliver the right infrastructure and policy framework, there is every opportunity to build on this progress and accelerate the transition to zero-emission road freight.
