New van market falls in October as electric van uptake dips

The SMMT said the overall fall follows a “robust” September market and reflects a contraction in fleet renewal across 2025, down 10.2% to 264,160 units in the year to date, amid weak business confidence and a tough economic environment. 

Declines were recorded across all van sizes during the month, with volumes of the largest LCVs down 7.0% to 16,443 units but still representing the majority (71.8%) of the overall market.

Registrations of new medium and small vans also fell, by 41.2% and 23.4% to 3,347 and 523 units respectively.

Volumes of new battery electric vans (BEV) also declined for the first time in 13 months, by 5.8% to 2,132 units, although the BEV market share edged up to 9.2%, given the overall market’s steeper contraction. However this is still far from the 16% share required by the ZEV Mandate.

SMMT said: “In the year to date, BEV volumes have increased by almost half (47.4%) to 24,250 units – significant growth bucking the trend of overall market decline thanks to manufacturers investing heavily in new model rollouts.

“Still, however, BEVs represent just 9.1% of all new registrations in 2025 – well below the 16% share mandated which rises to 24% in 2026.”

The SMMT pointed to a number of positive announcements this year that will help the sector transition to electric vehicles. These include permitting new, non-zero emission and plug-in hybrid vans for sale up to 2035, the extension of the Plug-in Van Grant, the new Depot Charging Scheme, and last month’s proposal to reform planning rules for private charger installations. However the society urged an urgent implementation of these changes to ensure ZEV Mandate targets are attainable.

It also called for planning reform to go further to enable faster grid connections for depot-based operators who want to switch to electric fleets, pointing out that operators  can face waits of up to 15 years to be connected to the grid. SMMT called for a fast-tracked approval process similar to those for data centres and wind farms.

Mike Hawes, SMMT chief executive, said: “While October’s decline is unsurprising amid the intense economic pressure facing businesses, returning the van market to growth is essential – especially to underpin new investment in zero emission models, which until now had bucked wider trends.

“Every lever must be pulled to get the market back on track, and transitioned at mandated levels. Accelerating infrastructure rollout and grid connections, in particular, will help ensure government targets are not just an aspiration but are actually deliverable for manufacturers and operators alike.”

Looking ahead SMMT said the latest market outlook continues to expect the new LCV market to reach 321,000 units in 2025, a decline of 8.7% on last year.

Uptake is anticipated to grow 4.2% to 334,600 units in 2026 and a further 0.6% in 2027.

Uptake of zero emission LCVs weighing up to 3.5 tonnes is anticipated to grow by 47% this year to achieve a 9.7% market share, growing to 14% in 2026.

The latest figures on electric van volumes was welcomed by Matt Hawkins, head of Flexis UK&I, which is a joint venture between Renault Group, Volvo Group, and CMA CGM, focused on creating and selling electric vehicles (EVs) and software solutions for urban logistics. 

Hawkins said electric van registrations reveal an increasing shift towards zero-emission commercial vehicles. He added: “As e-commerce continues to grow, the air quality, cost-saving and operational efficiency benefits of electric vans are becoming increasingly valued by logistics fleets – particularly for those entering their busiest period of the year.

“With the right infrastructure, supportive policies and continued innovation, businesses are realising that the transition to electric vans is not only achievable, but a real business advantage.”