The variety of new gentle industrial autos (LCVs) becoming a member of UK roads grew 2.4% in October with 26,974 new vans, pickups and 4x4s registered, in line with the most recent figures revealed in the present day by the Society of Motor Producers and Merchants (SMMT)
The variety of new gentle industrial autos (LCVs) becoming a member of UK roads grew 2.4% in October with 26,974 new vans, pickups and 4x4s registered, in line with the most recent figures revealed in the present day by the Society of Motor Producers and Merchants (SMMT). It represents the third consecutive month of total market development and the perfect October in three years.1
The expansion was pushed by demand for small and medium vans, up 55.9% and 49.6% to 683 and 5,688 models respectively. Uptake of huge vans, in the meantime, fell by -2.7% to 17,683 models, although these autos nonetheless characterize the overwhelming majority (65.6%) of the market. Demand for brand new pickups and 4x4s additionally declined, by -18.9% and -62.0% to 2,686 and 234 models respectively, after sturdy development a yr in the past.
Future demand for brand new pick-ups, nonetheless is now at severe threat following final week’s Price range announcement to tax double-cabs as vehicles for profit in form and capital allowances functions past April 2025. The change is about to heap additional prices on important industries reminiscent of farming, development, utilities, the self-employed and different companies for whom these autos are an on a regular basis workhorse. The trade urges authorities to rethink this transfer, subsequently, and replicate February’s choice by HMRC to keep away from harming these sectors with knock-on results for the broader UK economic system.2
Extra positively, demand for brand new battery electrical vans (BEVs) rose for the primary time in 5 months, up 61.8% to 2,263 models, with new registrations of the very greenest fashions representing 8.4% of the entire new LCV market in October.3 Over the course of the yr, nonetheless, uptake has fallen by -1.9% in contrast with the identical interval final yr, accounting for a 5.6% market share – considerably beneath the extent mandated.4
The decline is regardless of vital producer funding to develop Britain’s BEV option to greater than 30 cutting-edge, aggressive fashions. The extension of the Plug-in Van Grant into the following monetary yr is welcome and mandatory, however additional measures are critically wanted to offer extra fleet operators confidence that going electrical is commercially viable. Specifically, the shortage of chargepoint infrastructure suited to the precise wants of vans presents a significant barrier for fleet operators contemplating the change, and have to be addressed rapidly.
Mike Hawes, SMMT Chief Govt, mentioned,
The continued development in demand for brand new vans is encouraging given this sector is a barometer of the well being of Britain’s companies. Business has invested large sums delivering cutting-edge know-how, together with zero emission autos, however low demand raises severe doubt over the power of the UK to attain its bold inexperienced targets. There have to be an pressing overview of the market, regulation and assist in place, else the price will quickly be felt in decreased UK funding, financial development, jobs and decarbonisation.
1. New LCV registrations, October 2021: 24,420 models.
2. https://www.gov.uk/authorities/information/update-on-hmrc-double-cab-pick-up-guidance
3. SMMT’s new BEV LCV registration knowledge displays the Automobile Emissions Buying and selling Scheme, through which BEVs weighing >3.5-4.25t contribute in the direction of every producer’s goal, along with these weighing ≤3.5t.
4. New BEV registrations, January to October 2023: 15,658 models.
SOURCE: SMMT
