The UK’s new light commercial vehicle market fell 3.4% last month on the back of plunging pickup demand and a fallback in electric van take-up.

Marking the weakest new number plate March since 2023, a total of 49,505 vans, pickups and 4x4s joined the road, according to new figures from by the Society of Motor Manufacturers and Traders (SMMT).

The decline was driven by a significant fall in new pickup registrations, down 54.0% year-on-year to just 3,732 units due to the tax changes introduced in April 2025.

The drop in pickup demand undermined the growth seen in the LCV market’s highest-volume segments. Demand for large van models rose by 8.7% to 34,805 units, medium-sized vans were by 2.3% to 8,365 units, while deliveries of new 4x4s increased 41.3% to 1,871 units.

Uptake of small vans declined 53.8% to 732 units, but this followed a 60.8% uplift in March last year, and the SMMT noted such fluctuations are more naturally occurring in smaller volume segments.

The latest drop in pickup registrations rounds off a first quarter decline of 54.8% to 5,751 registrations – a shortfall of 6,967 compared with Q1 last year, after last April’s changes to treat double cabs as cars for Benefit-in-Kind and capital allowance purposes. Double cab VED and VAT rules remain the same, but the industry continues to urge the Government to reverse the BiK measure, warning that it’s “shackling businesses from purchasing the latest, most efficient models – keeping older, more polluting vehicles on the road for longer and reducing Treasury tax receipts”.

The SMMT also said a 15.9% decline in battery electric van (BEV) uptake for March was also a significant concern.

Just 3,543 units were registered in the new plate month, giving a market share of 7.1% – the weakest since September 2024. Diesel continues to dominate, accounting for more than eight in 10 (85.6%) new LCVs registrations. And while BEV demand has risen by 4.3% across the first quarter of 2026, it still represents just 9.0% of the overall market – just over a third of the 24% share mandated for the year.

That’s recent announcements such as the extension of funding for the Plug-in Van Grant until 2027, the new Depot Charging Scheme and proposed changes to planning rules for private charger installations.

Mike Hawes, SMMT chief executive, said: “A weak March is deeply concerning given this number plate change month often sets the tone for the year. Moreover, with fleet renewal now having contracted in 14 of the past 16 months, it reflects poorly on overall business confidence.

“A thriving market is essential not just to economic growth but to decarbonisation, and it is increasingly alarming to see BEV demand waning when it must accelerate to reach ever-tougher mandated levels. With the transition already falling behind schedule, a holistic review of the transition is urgently needed.”