Whilst Britain’s new light commercial vehicle (LCV) market fell by -20.5% in the first month of 2025, battery electric van (BEV) uptake rose for the fourth consecutive month, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).

However, the SMMT warned this week that despite this latest rise, BEV take up was unlikely to meet the level required to meet the government’s Zero Emission Vehicle Mandate of 16% this year.

The research found that 19,050 diesel vans, pick-ups and 4x4s were registered in the month, marking a second consecutive monthly decline.

This follows robust growth in 2024, with SMMT pointing to the tough economic backdrop and weakened business confidence as key factors.

Falling demand hit all but one segment, with small van registrations recording the only increase, up 89.8% to 668 units but still just a fraction (3.5%) of the market.

Registrations of the largest vans were down -22.3% to 11,537 units – representing 60.6% of the overall market – while those of medium vans fell by -30.4% to 3,507 units. In the smaller volume segments, meanwhile, 4x4s and pick-ups fell by -27.2% and -6.5% respectively.

Conversely, the uptake for battery electric vans up to 4.25 tonnes saw yet another month growth, which SMMT said was aided by the continuation of the Plug-in Van Grant. This marks a rise of12.4% to 1,464 units – an overall market share of 7.6%.

The SMMT said further growth is anticipated across the year, with the latest outlook published today suggesting BEV volumes to 3.5 tonnes will reach 33,000 in 2025 to command a 10.6% share of registrations.

However it noted that this is well below the 16% mandated and warned that the overall market is expected to contract by -1.2% to 348,000 units.

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The SMMT said manufacturers have invested massively in EV innovation with more than half (33) of all van models on the UK market available as zero emission, providing operators with a wide choice.

It warned that unless government backs its EV regulation with an ambitious fiscal and infrastructure strategy – one that includes mandating faster chargepoint rollout that meets the specific charging needs of vans compared with cars – operators will lack confidence to run their fleets on zero emissions.

The society called for the government’s review of the Zero Emission Vehicle Mandate to deliver measures and flexibilities that will support the industry and van purchasers.

Mike Hawes, SMMT chief executive, added: “The van market has enjoyed a bullish performance over the past two years but, amid a tough economic environment, businesses are under pressure. It means action is needed to drive fleet renewal and back the industry which has invested massively to produce new EV models.

“The mandate review must, therefore, deliver workable regulation that reflects market realities, and ensure infrastructure rollout that makes fleet decarbonisation a commercially viable, compelling proposition.”