UK light commercial vehicle registrations jumped 12.2% in June to reach 31,602 units, marking the third consecutive month of growth for the sector.

New data from the Society of Motor Manufacturers and Traders (SMMT) reveals that this strong June performance successfully lifted first-half registrations by 1.7% to 158,648 units, reversing the market decline recorded during the same period last year.

The June market surge was driven primarily by strong demand for larger and medium-sized commercial vehicles.

Registrations of vans weighing between 2.5 and 3.5 tonnes increased 12.6% to 21,951 units in the month, while medium-sized vans rose 62.1% to 6,795 units. Demand for 4×4 registrations grew by 20.8%, but vans weighing less than 2.0 tonnes declined by 19.3%.

Pickup registrations fell for the ninth month, down 57.6% as the tax changes implemented in April 2025 continue to impact demand. The SMMT said the move to reclassify double-cab pickups for Benefit-in-Kind and capital allowance purposes continues to impact sectors negatively, including construction, agriculture and utilities where these vehicles play a critical role. The industry body has reiterated its call on government to reverse the measure to support fleet renewal and accelerate the uptake of newer, lower-emission vehicles.

More positively, battery electric vehicle registrations rose for a third month, up 23.2% to take an 11.5% market share.

This helped lift first-half figures for eLCVs, with market share increasing from 8.6% to 9.9%.

Demand, however, remains well below the 24% headline share mandated this year. While manufacturers have several financial and trading mechanisms to avoid penalties, including reductions in the average emissions of their fossil-fuel fleets to offset their ZEV targets, the SMMT said the overall 24% target would require uptake to average some 40% market share, four times its current level, over the next six months. It has warned that such growth under current conditions is implausible.

While substantial manufacturer investment means that more than 40 van models are now available as zero emission, significant barriers remain, including higher upfront costs, charging infrastructure concerns and operating cost pressures – all of which influence purchasing decisions.

The trade body stressed again that the market assumptions underpinning the mandate no longer reflect economic or industrial realities. It says urgent reform is vital to keep decarbonisation on track while supporting investment, preserving customer choice and safeguarding UK competitiveness.

Mike Hawes, SMMT chief executive, said: “While businesses continue to invest in new vans, zero-emission uptake remains well below ambition, holding back the fleet renewal needed to deliver net zero. A successful transition requires regulation, infrastructure and incentives to work together, giving operators the confidence to invest.

“With the gap between targets and demand continuing to widen, urgent reform of the mandate is needed to keep the transition on track.”

Sue Robinson of the National Franchised Dealers Association (NFDA) said the latest figures provide a positive indication of continued demand across key areas of the commercial vehicle market despite ongoing economic pressures.

Robinson added: “June was a strong month for the LCV market, with growth across key van segments supporting overall registrations. It is also encouraging to see continued growth in electric van uptake, although market share remains below the level required to meet this year’s ZEV Mandate target. While some parts of the market continue to face challenges, overall demand remains positive.”