New light commercial vehicle (LCV) registrations fell by -7.8% in the first month of 2026 with 17,562 vans, pickups and 4x4s sold.
The Society of Motor Manufacturers and Traders (SMMT) said it is the weakest start to a year since 2012’s 16,049 registrations and reflected a “tough economic environment, with weak business confidence constraining fleet investment.”
The decline was driven by a -57% slump in demand for new pickups to 1,206 units, following government fiscal changes to treat double cabs as cars for benefit in kind and capital allowance purposes, which industry warned would heap additional costs onto buyers.
Demand for medium vans also fell, by -27.4% to 2,547 units, while the lower volume small van segment contracted by -39.8% to 402 units. Only large vans and 4x4s posted growth, up 10.0% to 12,696 units and 33.9% to 711 respectively.
Mike Hawes, SMMT chief executive, said: “January’s decline in new van uptake reflects ongoing economic and fiscal conditions which are limiting demand, particularly for pickups, as industry had warned.
“Rising EV uptake is encouraging but delivering the UK’s world-leading ambition is coming at huge cost to industry amid overall market contraction.
“With an even steeper 2026 target that is further still from real-world demand, government’s review of the transition must come urgently, recognising additional action is needed to deliver on ambition.
Sue Robinson, CEO of the National Franchised Dealers Association said the fall in sales was disappointing.
“The LCV market is in flux as it transitions towards electrification. While registrations are increasing, they remain a long way below last year’s ZEV mandate target of 16%.
“With the target rising to 24% from January, current demand does not indicate this is likely to be achieved without further market stimulation and greater confidence among van users that operating electric commercials is viable for their business.”
