The new light commercial vehicle market fell for the eighth month running in July, while electric van uptake soared.

Registrations dropped 5.1% to 24,433 units, marking the weakest July since 2022, as sluggish business confidence deterred fleet investment and economic conditions remain tough.

The latest figures from the Society of Motor Manufacturers and Traders (SMMT) show demand fell across most segments in the month. Uptake of the smallest vans recorded the sharpest drop, down 20.6% to 738 units, while deliveries of the largest models fell 4.6% to 16,040 units.

The pickup segment declined for a third consecutive month, down 17.3% to 1,897 units as April’s tax change to treat double-cabs as cars for Benefit-in-Kind and capital allowance purposes continued to bit.

Growth, however, was recorded in registrations of mid-sized vans, up 2.5% to 4,138 units, and 4x4s, up 0.5% to 620 units.

And there was positive news for battery electric vehicles (BEVs), with deliveries of electric vans rising by 72.6% to 2,442 in July – totalling eight months of continuous growth.

But across the year to date, BEVs represent just 8.8% of the overall market – a significant distance from the 16% mandated, indicating a pressing need for action to boost operator confidence. The SMMT has called for work to expedite depot grid connections, ensure efficient implementation of local planning and promptly deliver LCV-suitable infrastructure, in order to encourage investment and accelerate the transition.

The latest 2025 outlook has been revised downwards, with the market now expected to decline by more than 30,000 units, or 8.7%, to 321,000 units.

The BEV share of LCV registrations up to 3.5 tonnes has also been adjusted downwards for 2025, to 8.6%, with a marginal increase to 13.7% expected in 2026 against a mandated target of 24% in that year.

Mike Hawes, SMMT chief executive, said: “Eight months of LCV market decline underlines the ongoing economic pressures facing businesses, yet the sector remains steadfast in its commitment to decarbonise.

“Manufacturers continue to invest in delivering a diverse range of zero-emission vans to suit every use case, and it’s encouraging to see uptake growing – but to meet mandated targets, it must grow faster. Accelerating infrastructure rollout, streamlining planning processes and providing targeted support for fleet operators are essential to drive progress and keep the UK at the forefront of road transport decarbonisation.”