The Society of Motor Manufacturers & Traders (SMMT) published a report on UK van registrations in February 2025, suggesting a significant decline.
A Declining Demand
UK van registrations fell by 19.3% in February 2025, totalling 14,476 units, according to the latest SMMT data. February 2025 represents the third consecutive monthly decline, leading to the month’s lowest outturn since 2020, with operators traditionally postponing procurement until the arrival of the new March number plate.
With weakened business confidence due to the upcoming tax changes, the decline in demand impacted all but one segment, with smaller vans under 2.0 tonnes reporting the only increase of 55.3% to 427 units, representing 2.9% of the market. UK medium van registrations went down by 33% to 2,119 units, while larger vans dropped by 19% to 9,962 units in February 2025.
On a more positive note, battery electric van registrations (up to 4.25 tonnes) increased for the fifth consecutive month by 55.1% to 1,413 units, with market share rising to 9.7%. Opreators have an increasing choice now with more than 30 zero-emission van models available, and the industry has welcomed confirmation of the continuation of the Plug-in Van Grant.
SMMT suggested urgent action to encourage operators to switch to zero-emission models, along with regulation that delivers growth and decarbonisation, with the industry charged to deliver 16% of the new zero-emission van market this year. The government’s review of the Zero Emission Vehicle Mandate should deliver measures and flexibilities that tackle lacklustre demand and encourage faster fleet renewal.
Mike Hawes, Chief Executive at the SMMT, said: “Against an increasingly difficult economic backdrop, van manufacturers have shown resilience, but the decline was perhaps inevitable after two years of strong performance. Even in a contracting market, however, zero emission uptake is positive but still struggles to match the ambition of regulation. While the ongoing Plug-in Van Grant provides a lifeline, we still need support to bolster operator confidence, boost demand and deliver decarbonisation. Industry has committed billions to this vital transition and the mandate review must deliver workable measures that enable that commitment to deliver our shared ambition.”
