The UK’s new light commercial vehicle (LCV) market contracted for a fifth straight month in April, as new Benefit-in-Kind tax rules and a weak economic backdrop weighed on demand, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).
The National Franchised Dealers Association (NFDA) said the sector remained under pressure, with Chief Executive Sue Robinson noting that “recent tax changes in the new fiscal year” had affected the market “amidst a challenging economic environment”.
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In April, 20,332 new vans were registered, down 14.9% year-on-year. Registrations in all major weight segments declined, except pick-ups.
Small vans (under 2.0 tonnes) saw registrations fall 5.5% to 571 units. Medium vans (2.0–2.5 tonnes) dropped 5.8% to 4,344 units, while large vans (2.5–3.5 tonnes) fell 22.9% to 12,113 units.
Pick-up registrations increased 10.2% to 2,740 units. Robinson said this growth was likely driven by customers “looking to purchase ahead of Benefit-in-Kind changes that now see double-cab pickups taxed as cars”.
Electric van sales showed continued strength, with battery electric vehicles (BEVs) up to 4.25 tonnes rising 77.5% to 1,686 units. This marked the seventh month of consecutive growth in the segment, which now represents 8.3% of the LCV market year-to-date.
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By GlobalDataRobinson said a “key takeaway” from the latest figures was the resilience of electric van demand, “in spite of April’s tax changes which could have discouraged confidence in the transition to electric vehicles”.
Year-to-date, total LCV registrations stand at 105,079 units, an 11.5% decline from the same period in 2024.
Robinson also welcomed the government’s recent confirmation that new petrol and diesel van sales will be allowed until 2035, calling it “an outcome the NFDA strongly advocated for” in its response to the Zero Emission Vans consultation.
