The UK’s light commercial vehicle (LCV) market declined 11.8% in May 2025, with 22,796 vans, 4x4s and pick-ups registered, according to the Society of Motor Manufacturers and Traders (SMMT).

This is the lowest May performance since 2022 and the sixth consecutive month of falling registrations.

Weak business confidence is impacting fleet investment, driving the downturn.

Demand dropped across all van sizes. The largest models fell 14% to 14,652 units, medium-sized vans decreased 9.2% to 4,065 units and sales of the smallest vans declined 7.8% to 673 units.

The 4x4 segment was the only area of growth, rising 36.9% to 716 units. However, the pickup segment saw a 12.7% drop to 2,690 registrations, affected by April’s fiscal changes treating double-cab pickups as cars for benefit-in-kind and capital allowance purposes.

These tax changes are increasing costs for businesses in sectors such as farming, construction, utilities and sole trading, which rely on these vehicles.

The policy may discourage new orders, keeping older, more polluting vehicles on the road longer.

This could also reduce tax revenues due to lower sales volumes. The SMMT has urged the UK government to delay the tax change by at least one year to allow industry and customers more time to adapt.

New lower and zero-emission vehicles are entering the market. Battery electric van (BEV) registrations grew 50% to 1,731 units in May, marking seven consecutive months of rising demand.

Despite almost 40 BEV models being available, zero-emission vans accounted for only 7.6% of the market in May and 8.2% of the year 2025 up to that point. This falls short of the 16% share mandated for the year.

The SMMT highlighted the plug-in van grant as vital support for buyers, but stressed the need for rapid investment in LCV-suitable charging infrastructure at public, depot and shared hub locations.

The organisation called for preferential treatment for depot grid connections, noting wait times of up to 15 years - beyond the 2035 end-of-sale date for internal combustion engine vehicles.

Consistent local planning policies are essential to streamline the transition to zero-emission fleets and boost business confidence, according to the SMMT.

SMMT chief executive Mike Hawes stated: “Six months of declining new van demand reflects a tough economic environment and weak business confidence – and that won’t be helped by punitive taxes such as on double-cabs that will only restrict wider growth.

“Fleet renewal with the latest, cleanest models must be encouraged so it’s positive that zero emission van uptake is rising, but with market share at just half the mandated level, it’s clear we need action to drive that uptake faster. Accelerating LCV-centric and affordable chargepoint rollout is the bold next step that van operators and manufacturers need now.”