Light commercial vehicle (LCV) sales fell by -20.5% in January with 19,050 vans, pick-ups and 4x4s registered.
The Society of Motor Manufacturers & Traders (SMMT), which released the figures, said it was the second consecutive monthly decline following strong growth in 2024.
It forecast that sales would fall by -1.2% to 348,000 units against a tough economic backdrop with weakened business confidence to invest.
Falling demand hit all but one segment, with small van registrations recording the only increase, up 89.8% to 668 units but still just a fraction (3.5%) of the market.
Registrations of the largest vans were down -22.3% to 11,537 units – representing 60.6% of the overall market – while those of medium vans fell by -30.4% to 3,507 units. In the smaller volume segments, meanwhile, 4x4s and pick-ups fell by -27.2% and -6.5% respectively.
Battery electric van (BEV to 4.25T) uptake rose for the fourth consecutive month, supported by the continuation of the Plug-in Van Grant, up 12.4% to 1,464 units – an overall market share of 7.6%.
Further growth is anticipated across the year, with the latest outlook published today suggesting BEV volumes (to 3.5T only) will reach 33,000 in 2025 to command a 10.6% share of registrations – substantially below the 16% mandated. At the same time, the overall market is expected to contract by -1.2% to 348,000 units.
The SMMT called on government’s review of the Zero Emission Vehicle Mandate to deliver measures and flexibilities to support the industry and the van buyer.
Mike Hawes, SMMT chief executive, said: “The van market has enjoyed a bullish performance over the past two years but, amid a tough economic environment, businesses are under pressure.
“It means action is needed to drive fleet renewal and back the industry which has invested massively to produce new EV models.
“The mandate review must, therefore, deliver workable regulation that reflects market realities, and ensure infrastructure rollout that makes fleet decarbonisation a commercially viable, compelling proposition.”
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