New light commercial vehicle (LCV) registrations fell by 12.1% to 156,048 units in the first half of 2025, according to the Society of Motor Manufacturers and Traders (SMMT).

The fall marks the seventh straight month of reduced registrations, with a 14.8% decline in June, highlighting the “worst” opening half-year performance since 2022 due to economic pressures and weak business confidence.

Year-to-date figures show a decrease in demand for the largest vans, which dropped by 14.8% to 99,790 units.  

Medium-sized van deliveries also fell by 20.9% to 26,408 units while 4×4 uptake saw a 6% decrease to 4,041 units.  

Despite a 30.7% increase in small van demand to 4,907 units, this segment’s lower volume could not offset the overall market decline, the trade body said.

The first half of 2025 saw a 10% increase in new pickup registrations, reaching 20,902 units.

However, this growth masks two consecutive months of decline following the introduction of new fiscal measures in April, treating double cabs as cars for tax purposes.

These changes have increased costs for businesses, limiting orders for zero- and lower-emission models and prolonging the use of more polluting vehicles. 

SMMT has urged the government to postpone these fiscal measures for at least one year to allow industry and operators to better plan and adapt.  

Despite the challenges, manufacturers are investing in zero-emission LCVs, with nearly 40 battery-electric van (BEVs) models now available, up from 28 last year. 

BEV demand increased by 52.8%, with 13,512 units registered in 2025, supported by a 97% surge in June deliveries.

However, BEVs account for only 8.6% of the market, falling short of the 16% government mandate for 2025.

According to the SMMT, the Plug-in Van Grant remains essential, but businesses face hurdles due to inadequate commercial vehicle charging infrastructure.

It also emphasises the need for government action to improve access to LCV-suitable infrastructure and preferential treatment for depot grid connections, as some sites face waits of up to 15 years.

The trade body added that efficient local planning policy implementation is needed for fleets to transition to zero emissions confidently.

SMMT CEO Mike Hawes said: “Half a year of declining demand for new vans reflects a difficult economic climate and weak business confidence, and the fact that this downturn comes just as the industry invests heavily to expand its zero-emission LCV offering is particularly concerning.  

“Decarbonisation remains a shared ambition but with the EV market more than a third below this year’s target, bold measures are needed to drive demand. Accelerated CV infrastructure rollout, quicker grid connections and streamlined planning are now critical.” 

Last month, the UK new car market experienced growth for the second consecutive month, with registrations rising by 6.7% to 191,316 units.

It marked the “best” June since 2019, with first-half performance 3.5% above the previous year, although still 17.9% below pre-Covid levels.