🕒 Article read time: 4 minutes
New van market shrank by a fifth in 2020
UK new light commercial vehicle (LCV) registrations ended 2020 down by 20%, according to the latest figures released by the Society of Motor Manufacturers and Traders (SMMT).
The van market rounded off the year in decline, following three months of growth, with fewer than 300,000 vehicles registered in 2020 – the first time it has dipped below that number since 2013.
COVID AND BREXIT CREATE UNCERTAINTY
A perfect storm of COVID-19 and uncertainty over the future relationship with the EU depressed demand toward the end of the year. While volumes were consistent with previous Decembers, the last month of the year saw registrations drop by a further one per cent.
MARKET RESPONDS TO FLUCTUATING DEMAND
Demand for LCVs fluctuated throughout the year as lockdown measures affected consumer behaviour and business operations. While the LCV market tried to respond accordingly, the shortfall of more than 73,000 vehicle registrations cost the sector £2 billion in retail value. Despite the boom in online shopping and parcel deliveries, the effect of the pandemic on businesses and the wider economy has subdued demand, shrinking the van market by a fifth in 2020.
VAN REGISTRATIONS OF ALL SIZES FALL
From the smallest to the largest, all van segments saw a decrease in the year. Small vans up to two tonnes were down more than a third (34.4%), medium vans weighing from two to 2.5 tonnes were down 15.6% and larger vans weighing from 2.5-3.5 tonnes were down almost a sixth (16.5%). Demand for new pickups and 4x4s fell by 32.7% and 10.6% respectively.
SMMT CHIEF MARKS END OF TESTING YEAR
2020 was a truly extraordinary and testing year for the commercial vehicle sector, according to SMMT Chief Executive Mike Hawes.
“From keeping services running, to getting key workers, goods and medicines from A to B, manufacturers and operators alike have adapted to multiple unpredictable challenges,” Hawes said. “Undeniably the LCV market, having shrunk by a fifth, has a lot of hurdles to overcome as we enter 2021. However, investment in fleet renewal will be key to driving recovery, and the sector’s resilience, now coupled with added clarity over UK-EU trading relations and the rollout of vaccines, offers hope for both the van market and the wider economy.”
*https://media.smmt.co.uk/news/
Published On: 21/01/2021 17:00:04
Comments Section
If you are a Logistics UK member login to add comments.
