UK registrations of new LCVs fell 7.8% in January, signalling the weakest start to a year since 2012.

A total of 17,562 vans, pickups and 4x4s joined UK roads last month; down from 19,050 units a year ago, according to new figures from the Society of Motor Manufacturers and Traders (SMMT).

The industry body said the slump reflects a tough economic environment, with weak business confidence constraining fleet investment.

Demand for pickups fell 57.0% to 1,206 units, following government fiscal changes to treat double cabs as cars for Benefit-in-Kind and capital allowance purposes.

Medium vans were also down, falling 27.4% to 2,547 units, while the lower volume small van segment contracted by 39.8% to 402 units.

Only large vans and 4x4s posted growth, up 10.0% to 12,696 units and 33.9% to 711 respectively.

Headline growth in battery electric van (BEVs) registrations was positive, with uptake rising 26.0% to 1,844 units. This pushed the market share to 10.4% – that’s up from 7.6% a year ago but significantly behind the 24% ZEV mandate target for the industry for 2026.

The plummeting van demand has led to a downgrade in the latest industry outlook for 2026, with 321,000 units expected to be delivered this year – still a 1.9% increase on 2025, but a significant drop from the 335,000 anticipated in the previous October outlook.

And while the latest BEV outlook expects more than 50% growth this year, the market share has been revised down to 13.1%, from the 14.0% share predicted in the last outlook.

The industry has called again on the Government for additional action to ensure the ZEV mandate ambitions are met.

While last year’s extension of funding for the Plug-in Van Grant until 2027 was welcome, the SMMT said clarity is urgently needed on the timing, scale and conditions of support beyond April this year.

And although the new Depot Charging Scheme and proposed planning reform for private charger installations will help the transition, the SMMT said further action was necessary given critical barriers remain, including stubbornly high energy costs, a major lack of van-suitable public charging and lengthy waiting times for depot-to-grid connections.

Mike Hawes, chief executive, said: “Rising EV uptake is encouraging but delivering the UK’s world-leading ambition is coming at huge cost to industry amid overall market contraction. With an even steeper 2026 target that is further still from real-world demand, government’s review of the transition must come urgently, recognising additional action is needed to deliver on ambition.”

The National Franchised Dealers Association (NFDA) also stressed the need for urgent action to boost business confidence in eLCVs.

Sue Robinson, chief executive, said: “The LCV market is in flux as it transitions towards electrification. While registrations are increasing, they remain a long way below last year’s ZEV mandate target of 16%. With the target rising to 24% from January, current demand does not indicate this is likely to be achieved without further market stimulation and greater confidence among van users that operating electric commercials is viable for their business.”