The UK new van market shrank again in August with a 13.3% decline but demand for electric vans rocketed.

Some 14,365 new vans, pickups and 4x4s joined UK roads last month, down from 16,575 in August 2024, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).

August is generally the smallest-volume month ahead of ‘new plate’ September, but van volumes have now fallen every month this year amid a tough economic environment and weak business confidence.

Declines were seen across all segments in August. Registrations of the largest vans fell 11.5% to 10,398 units – albeit still accounting for 72.4% of the overall market. Meanwhile, deliveries of medium-sized vans fell by 14.0% to 2,383 units.

Registrations of new pickups saw the largest percentage drop, down 25.8% to 1,040 units, impacted by recent fiscal changes to reclassify double-cab pickups as cars for Benefit-in-Kind and capital allowance purposes since April.

The small van and 4×4 segments – both traditionally much smaller in volumes – also declined, down 17.6% and 13.9% to 352 and 192 units respectively.

Demand for battery electric vans (BEVs), however, more than doubled with a 109.5% rise to 1,902 units and a record new market share of 13.0%.

Year to date, the overall van market has fallen 11.4% but new BEV uptake has risen by 59.9% – now accounting for 9.1% of the overall market. However, that share remains some distance below the 16% mandated target, highlighting the need to increase market confidence.

The SMMT said operator confidence for September – the new van market’s second-busiest month of the year – will be crucial for the industry.

The industry body added that the extension of the Plug-in Van Grant, along with the Depot Charging Scheme, can help operators switch but achieving mandated levels requires a transition that is accessible to all new buyers – particularly those dependent on van-suitable charging infrastructure in public and on-street locations.

Depots, meanwhile, which could face grid connection waits of up to 15 years, need planning priority like that afforded data centres and wind farms, enabling smooth and timelier road decarbonisation.

Mike Hawes, SMMT chief executive, said: “August is conventionally a low-volume month for the new LCV market so while the continued decline is disappointing, the focus is on September to deliver the fleet investment and growth that would reflect a healthy business environment.

“A thriving market is also essential for decarbonisation, given the vast choice of electric van models already available to suit almost every need. Manufacturers need greater volumes to ensure investment in innovation continues unabated.”