Van market shrinks in 2025

SMMT figures show that the registrations of new vans in 2025 dropped.

The new light commercial vehicle (LCV) market declined by 10.3% in 2025, at 315,422 registrations, according to the SMMT.

Figures recorded showed that fleet renewal shrank in every month except for December, which registered a slight 1.7% rise.

Registrations of new medium-sized vans declined 20.7% to 51,639 units, and large vans dropped 9.8% to 210,262 but remained the most popular segment. Pickups ended 2025 down, by 0.7% with 37,308 registrations.

On a positive note, deliveries of new battery electric vans rose by 36.2% with 30,196 registrations – marking a new annual record. The growth is a result of significant industry investment to offer more than 40 different zero emission models, half of new model choice.

However, the EV market share stands at 9.5%, shorter than the 16% mandated for the year, reflecting a gap between ambition and reality. This will rise to 24% in 2026.

Barriers against adopting vans include higher production costs, a lack of suitable public charging and long waiting times for depots to be connected to the grid.

Mike Hawes, Chief Executive of SMMT said: “Government’s upcoming review must acknowledge the unique challenges facing the light commercial vehicle sector and the additional action required, else the gap between market regulation and reality will continue to widen.”

Related content: LCV registrations drop 15.1% in October