UK new light commercial vehicle registrations rose 25.8% in January, boosted by a major jump in demand for fully electric vans.

The SMMT said action is needed to deliver a van-suitable charging network while incentives are maintained

A total of 22,098 LCVs were registered during the month, marking the first month of growth since September 2022, according to the latest figures published today by the Society of Motor Manufacturers and Traders (SMMT). This compares to 17,566 in January 2022 and reinforces forecasts for full-year growth of 13.9% in 2023. But the figure is still 6.2% below the same month in 2020 prior to the pandemic, and the industry body warned January is traditionally a volatile month due to the intermittent nature of fleet renewal.

Registrations were up across all weight classes, with the exception of small vans weighing up to 2.0 tonnes, which dropped 22.6%. Demand was particularly high for vans from over 2.5 to 3.5 tonnes, which rose by 34.1%, while vans weighing greater than 2.0 to 2.5 tonnes were up 3.3%. The smaller volume pickup and 4×4 segments grew by 20.6% and 62.7% respectively.

Battery electric van (BEV) deliveries were up 53.5%, rising to 993 units and accounting for one in 22 vans joining UK roads.

Increased focus on green fleets and a widening choice of models – there are nearly 40 plug-in LCV models currently available and more in the pipeline this year – mean the trend is set to continue, with the latest market outlook anticipating 2023 BEV uptake to rise by 64.5% to some 28,000 units.

The total LCV market is also set to grow this year, with 321,000 van registrations targeted, amounting to an uplift of 13.9% – with a market value of more than £13bn, a £1.5bn increase on 2022.

But the SMMT says action is needed to deliver a van-suitable charging network – including binding targets – while incentives must be maintained long-term.

Mike Hawes, chief executive, commented: “The LCV sector is already delivering growth for the UK in 2023, bucking the recessional economic trends. Manufacturers have invested billions to bring choice to the market, especially in electrified vehicles, so harnessing this momentum will be essential to an increasingly green recovery. Accelerating electric van uptake means delivering infrastructure and incentives to give every van operator the confidence to make the switch.”

Jon Lawes, managing director, Novuna Vehicle Solutions, also warned that supply chain pressures continue to hamper the sector, despite its optimism for the coming months due to a strong order book and the influx of new electric van models for different usages.

“With more than 33,000 electric vans on UK roads last year, fleets are evidently increasingly mindful that they need to transition from ageing and increasingly obsolete vehicles to zero emission alternatives as they reach their renewal cycles in order to navigate the unprecedented cost pressures they face, including the escalation in last-mile delivery costs.

“Businesses urgently need greater confidence and conviction to transform their fleets. Ultimately, as we’re seeing first hand, the catalyst for many drivers to switch to zero-emission mobility relies on robust workplace and depot charging infrastructure. It’s critical we work together across the industry to address these issues.”