The UK’s light commercial vehicle (LCV) market fell by 10.3% in 2025, with 315,422 vans, pickups and 4x4s registered, according to the latest figures from the
Society of Motor Manufacturers and Traders (SMMT). Fleet renewal declined in every month except December, which posted a modest 1.7% rise, reflecting a challenging economic climate and weak business confidence.
Medium-size van registrations dropped sharply by 20.7% to 51,639 units, while large vans fell 9.8% to 210,262 but remained dominant with a 66.7% share of the market. Pickups ended the year down 0.7% at 37,308 registrations, despite early-year growth ahead of tax changes that now treat double cabs as cars for benefit-in-kind and capital allowance purposes. Small vans and 4x4s bucked the trend, rising 1.9% and 2.3% respectively to 8,766 and 7,447 units.
There was better news for battery electric vans (BEVs), which surged 36.2% to a record 30,169 registrations. This growth came despite the overall market contraction, driven by significant industry investment in more than 40 zero-emission models — over half of all new van options.
Mandated targetsHowever, manufacturers had to subsidise sales heavily, with nearly £400 million in discounts last year to bridge the gap between mandated targets and real-world demand. BEVs accounted for just 9.5% of the market, well short of the 16% required for 2025, underlining the gap between ambition and reality.
Barriers to adoption remain, including high production costs, limited van-suitable public charging and long delays for depot grid connections. While measures such as the Plug-in Van Grant extension, the new Depot Charging Scheme and proposed planning reforms will help, the steep rise in mandated EV share to 24% in 2026 will require further action. An urgent review of the transition is needed to ensure regulation and support measures drive demand without undermining industry viability.
Mike Hawes, SMMT chief executive, said: “2025’s new van market reflects a tough economic environment which constrained fleet investment. While rising EV uptake is encouraging, it has come at a huge cost to industry and remains significantly adrift of ambition. The Government’s upcoming review must acknowledge the unique challenges facing the light commercial vehicle sector and the additional action required, else the gap between market regulation and reality will continue to widen.”