UK new light commercial vehicle (LCV) registrations rose 12.2% in June to 31,602 units, according to the Society of Motor Manufacturers and Traders (SMMT).
The third consecutive month of growth saw first half registrations increase by 1.7% to 158,648 units, reversing the decline recorded during the same period last year.
Mike Hawes, SMMT Chief Executive, said: “The market’s return to growth is encouraging, but it comes against a backdrop of lower volumes and significant market disruption over the past 18 months, not least the sharp fall in pickup demand after tax changes. While businesses continue to invest in new vans, zero emission uptake remains well below ambition, holding back the fleet renewal needed to deliver net zero.
“A successful transition requires regulation, infrastructure and incentives to work together, giving operators the confidence to invest.
“With the gap between targets and demand continuing to widen, urgent reform of the mandate is needed to keep the transition on track.
The June uplift was driven by demand for larger vans. Registrations of vans weighing between 2.5 and 3.5 tonnes increased 12.6% to 21,951 units, while medium-sized vans rose 62.1% to 6,795 units and 4×4 registrations grew 20.8%, but vans weighing less than 2.0 tonnes declined -19.3%.
Pickup demand continued to decline, falling -57.6% to 1,167 units, now representing just 3.7% of the total market versus 9.8% a year ago.
The SMMT is reiterating its call on government to reverse the reclassification of double cab pickups for Benefit in Kind and capital allowance purposes to support fleet renewal and accelerate the uptake of newer, lower-emission vehicles.
Battery electric vehicle (BEV) registrations, meanwhile, rose for a third month, up 23.2% to take an 11.5% market share.
The strong monthly performance contributed to a positive first half of the year for electric vans, with market share increasing from 8.6% to 9.9%.
Demand, however, remains well below the 24% share mandated this year – a target that would require uptake to average some 40% market share.
The majority of van models are now available with a plug, however, significant barriers include higher upfront costs, charging infrastructure concerns and operating cost pressures.
