UK LCV registrations have recorded their best first half performance since 2019 on the back of strong demand in June.

Demand for new vans was up by 31.0% in June but eLCV uptake fell 11.9%

New figures from the Society of Motor Manufacturers and Traders (SMMT) reveal a total of 169,926 new vans, pickups and 4x4s were registered in the first half of 2023, up 17.7% compared with the same period last year, as the supply chain shortages continue to ease.

The rise comes after registrations grew for the sixth consecutive month, growing by 31.0% to 34,630 units.

The figures for June show strong uptake of the largest LCVs, weighing greater than 2.5 to 3.5 tonnes, which rose by 15.6% to 23,640 units and accounted for 68.3% of the market.

Registrations of medium-sized vans, more than 2.0 and up to 2.5 tonnes, reached 6,291 units, up 160.8%. But lighter vans weighing less than or equal to 2.0 tonnes fell 42.8%, an ongoing trend as operators turn to larger vehicles due to the potential for greater cost efficiencies. Pickups and 4x4s, meanwhile, increased by 40.8% and 180.1% respectively.

Take-up of battery electric vans (BEVs) continues to cause concern though; while volumes were up 8.7% year to date, they fell 11.9% in June to 1,775 units. The YtD market share has also declined, accounting for just 5.2% of all registrations compared to 5.6% for the first half of 2022. That’s almost half the 10.0% market share envisaged under the zero emission vehicle mandate set to be implemented in just six months’ time. And it’s left the sector calling for urgent action to accelerate uptake.

Mike Hawes, SMMT chief executive, said: “As we reach the year’s midway mark, the surge in light commercial vehicle registrations is good news and delivers continued optimism to the market.

“The fall in electric van uptake just at the time when we need it to grow is, however, very concerning. Despite the continued availability of the plug-in van grant, more needs to be done to give operators the confidence to make the switch. This means a long-term plan which supports purchase and helps overcome some of the barriers to the installation of van-suitable charging infrastructure, given the unique needs of this sector.”

The SMMT – along with prominent fleet experts – has long warned that a paucity of van-suitable charging points remains a major obstacle to eLCV take-up. And it’s highlighted how “an outdated planning system and delays to grid connections” are hampering charge point operators’ plans to tackle this.

“With high energy prices also a deterrent to the transition, urgent measures to drive down the cost of charging are required to enable the switch to be as cost effective as possible,” the SMMT added.

Transport research organisation New AutoMotive, whose Electric Van Count also shows declining eLCV take-up, said the Government must continue to accelerate its support for the segment.

Ciara Cook, policy officer at New AutoMotive, said: “It is encouraging to see such a wide selection of electric van models on the market, with 49 models there’s plenty of choice for businesses. Businesses must be allowed to access the savings which owning an electric van will unlock. The Government needs to continue to offer the Plug-in Van Grant to businesses so that they can access the savings from owning an electric van as quickly as possible.

“These figures show we need an ambitious ZEV mandate to push the industry forward and help more businesses access e-vans, to reduce their motoring costs in this financially uncertain period.”