UK new light commercial vehicle (LCV) registrations rose 22.0% in July to 28,578 units, according to figures published by the Society of Motor Manufacturers and Traders (SMMT). July marked the market’s fourth consecutive month of growth, as year-to-date registrations reached 187,226 units, up 4.3% on the first seven months of 2025.
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Large and medium-sized vans both recorded strong growth, up 29.9% to 20,842 units and 20.7% to 4,993 units respectively. Demand for 4x4s also rose, by 66.1% to 1,030 registrations, while the small van segment grew 11.8% to 825. Pickups declined for a 10th consecutive month, down 53.2% to 888 units and accounting for just 3.1% of the total UK LCV market. Demand continues to be affected by the reclassification of double cab pickups under ‘Benefit-in-Kind’ (UK personal income tax regs) and capital allowance rules. Given the vital role these vehicles play in supporting economic activity, and to encourage fleet renewal, SMMT continues to ‘urge government to reverse the measure’.
Battery electric vehicle (BEV) registrations rose 74.1% in the month – the best since August 2025 – to take a record market share of 14.7%. Year-to-date, market share has for the first time reached double digits, at 10.6%, although this is still less than half the level needed to achieve this year’s mandated target of 24%.
The UK government’s ZEV Mandate target is also being undershot in new car sales – despite soaring electric car sales last month.
The SMMT points out that substantial barriers to the transition to electric LCVs still remain. Higher upfront purchase costs, as well as insufficient charging infrastructure and increasing operator pressures, continue to influence purchasing decisions. The SMMT says urgent reform of the ZEV Mandate regulation is necessary, with ‘more achievable targets that reflect market demand, as well as the creation of better conditions both for decarbonisation and investment to strengthen the UK’s competitive position’.
Mike Hawes, SMMT Chief Executive, said: “Continued van market growth shows operator resilience and sustained sector investment, while record battery electric van uptake is encouraging, proving businesses will switch if business conditions are right. However, multiple barriers are constraining the market – high capital expenditure costs, infrastructure challenges and, for pick-ups, fiscal disincentives. Rapid revisions to regulation and taxation are required urgently to spur the commercial vehicle fleet renewal essential to the achievement of net zero.”
