Demand for new light commercial vehicles rose 2.4% in October but industry concern for EVs and pickups is mounting.

The Plug-in Van Grant extension has been welcomed but the SMMT says further measures are vitally needed

A total of 26,974 new vans, pickups and 4x4s were registered month, latest figures from the Society of Motor Manufacturers and Traders (SMMT) reveal. The market has now risen for three months running and recorded its best October in three years.

Small and medium vans were up 55.9% and 49.6% to 683 and 5,688 units respectively. Uptake of large vans fell by 2.7% to 17,683 units, but such vehicles still represent the vast majority (65.6%) of the market.

Demand for new pickups and 4x4s declined, by 18.9% and 62.0% to 2,686 and 234 units respectively, after strong growth a year ago.

The SMMT has warned that future demand for new pickups is now at serious risk following last week’s announcement in the Budget to tax double-cabs as cars for Benefit-in-Kind and capital allowances purposes beyond April 2025.

The Association of Fleet Professionals has already said the change will likely ensure double-cabs disappear from company car choice lists and the SMMT has now cautioned that the move will heap further costs on vital industries such as farming, construction, utilities, the self-employed and other businesses where these vehicles are an everyday workhorse.

It’s urged the government to reconsider this move, reflecting HMRC’s decision last February to avoid harming these sectors while also avoiding knock-on effects for the wider UK economy.

And despite some positive news for battery electric vans (BEVs), the automotive sector business group also said more support is needed here.

Demand for BEVs was up 61.8% in October to 2,263 units, marking the first rise in five months and giving an 8.3% share of the whole new LCV market in October.

But year-to-date uptake has fallen by 1.9% compared to the same period last year, accounting for a 5.6% market share – significantly below the 10.0% level mandated.

While the Budget’s Plug-in Van Grant extension for a further year has been much welcomed, the SMMT said further measures are critically needed to give more fleet operators confidence that going electric is commercially viable.

In particular, the lack of charge point infrastructure suited to the specific needs of vans presents a major barrier for fleet operators considering the switch, and must be addressed quickly.

Mike Hawes, SMMT chief executive, said: “Industry has invested huge sums delivering cutting-edge technology, including zero-emission vehicles, but low demand raises serious doubt over the ability of the UK to achieve its ambitious green targets.

“There must be an urgent review of the market, regulation and support in place, else the cost will soon be felt in reduced UK investment, economic growth, jobs and decarbonisation.”

Sue Robinson, chief executive of the National Franchised Dealers Association (NFDA), said it was encouraging to see the modest 2.4% growth in the new LCV market, along with the first signs of growth in BEV light commercial registrations in five months.

She added: “The Government must invest further to encourage a critical mass of operators to transition to BEV commercial vehicles. Making the shift to electric must be a practical option, yet many fleet customers view the inadequate charging infrastructure as a significant drawback, especially for drivers who frequently work from home.”

Robinson also said the NFDA remains concerned about the upcoming changes to taxation rules for double cab pickups from April 2025, announced in last week’s Autumn Budget.

“This double cab market accounts for 10.5% of all light commercials sold this year. Reclassifying these will remove the Benefit-in-Kind taxation and the ability for businesses to reclaim VAT. This change is likely to significantly reduce sales to sectors such as construction, agricultural and self-employed tradesmen who depend on these to transport their workers onsite.”