Van market dip ‘highlights weak business confidence’

5 February 2026  

New light commercial vehicle (LCV) registrations fell by nearly 8% in the first month of this year, marking the weakest start to a year since 2012, according to figures published today by the Society of Motor Manufacturers and Traders (SMMT).

The SMMT said the figures reflects a tough economic environment, with weak business confidence constraining fleet investment, with the decline driven by a 57% slump in demand for new pickups to 1,206 units.

The move follows government fiscal changes to treat double cabs as cars for benefit in kind and capital allowance purposes, which the industry warned would heap additional costs onto buyers, SMMT said.

Demand for medium vans also fell, by 27% to 2,547 units, while the lower volume small van segment contracted by 40% to 402 units. Only large vans and 4x4s posted growth, up 10% to 12,696 units and 34% to 711 respectively.

Headline growth in electric van registrations was also positive, with uptake rising 26%. But, with a market share of 10.4%, demand would have to more than double to meet the mandated target of 24% in 2026.

‘Immense challenge’

Delivering such growth in a weak overall market, and despite more than half of all models now available as EVs, with unprecedented discounts on their sale, poses an immense challenge, SMMT said.

Meanwhile, the latest industry outlook for 2026 has been revised downwards, with 321,000 units expected to be delivered this year – still a 2% increase on 2025, but a significant softening from the 335,000 anticipated in the previous October outlook.

Similarly, while the latest BEV outlook expects more than 50% growth this year, the market share has been revised down to 13%, from the 14% share expected in the last outlook.

Mike Hawes, SMMT chief executive, said: “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.”