LONDON, Jan. 6 (Xinhua) -- Britain's new light commercial vehicle market declined in 2025 despite a sharp rise in electric van registrations, industry data released on Tuesday has shown.
A total of 315,422 new vans, pickups and 4x4s were registered last year, a drop of 10.3 percent from 2024, according to the figures published by the Society of Motor Manufacturers and Traders (SMMT). Registrations fell in every month except December, which recorded a modest 1.7 percent increase, reflecting weak business confidence and a challenging economic environment.
Medium-sized van registrations dropped by 20.7 percent to 51,639 units, while registrations of large vans fell 9.8 percent to 210,262 but remained the dominant segment, accounting for two-thirds of the market. Pickup registrations edged down 0.7 percent to 37,308 units, following earlier growth ahead of a tax change that reclassified double-cab pickups for benefit and capital allowance purposes. Small vans and 4x4s were the only segments to record growth, rising 1.9 percent and 2.3 percent, respectively.
By contrast, registrations of new battery electric vans surged 36.2 percent year on year to a record 30,169 units. However, electric vans accounted for just 9.5 percent of total registrations, well below the government-mandated target of 16 percent for 2025. The SMMT estimated that manufacturers offered nearly 400 million pounds (about 542 million U.S. dollars) in discounts last year to stimulate demand.
The industry body cited higher production costs, limited public charging suitable for vans and delays in grid connections as key barriers to wider electric van adoption. It warned that a planned increase in the mandated electric van share to 24 percent in 2026 would require urgent policy review and additional support measures.
SMMT Chief Executive Mike Hawes said the 2025 van market reflected "a tough economic environment which constrained fleet investment." While electric van uptake was encouraging, he added, it remained "significantly adrift of ambition" and came at a high cost to industry.
The SMMT called on the government to ensure that upcoming policy reviews align regulatory ambition with market realities, warning that failure to do so could undermine industry viability and investment appeal. (1 pound = 1.35 U.S. dollar) ■
