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UK sees increasing demand for new vans every month in 2023

By Mathilda Bartholomew | January 8, 2024

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A remarkable number of zero-emission vans hit the roads, contributing to a total of 59,316 more LCVs than in 2022

UK sees increasing demand for new vans every month in 2023

In 2023, there was a consistent increase in the demand for new vans, especially those going green. According to the Society of Motor Manufacturers and Traders (SMMT), the demand for new light commercial vehicles (LCVs) in the UK grew by 21.0%, reaching a total of 341,455 units.

Businesses are making a record number of electric choices, with more companies investing in fleet renewal each month compared to the previous year. A remarkable number of zero-emission vans hit the roads, contributing to a total of 59,316 more LCVs than in 2022. This surge can be attributed to an additional £2 billion spent by companies performing essential roles in the economy, ranging from local trades to retailers and online delivery services.

December 2023 was particularly impressive, with a 36.1% increase in demand—the best for that month since 2015. The entire year saw the highest demand for new vans since the post-pandemic bounce back in 2021, falling only -6.6% below 2019 levels.

In terms of van sizes, the largest vans (weighing between 2.5 to 3.5 tonnes) were the most popular, with a 9.4% increase to 228,442 registrations. Medium-sized vans (above two tonnes to 2.5 tonnes) saw a significant surge of 78.4% to 57,992 units. Demand for pickups and 4x4s also rose, while registrations for the smallest vans (equal to or less than two tonnes) declined.

Excitingly, there's a shift towards electric vans, with a record 21.0% growth in new battery electric vans (BEVs), reaching 20,253 units. In December alone, BEV uptake jumped 73.8%, representing 10.0% of registrations—the second-highest monthly BEV share. Since 2019, 58,226 BEVs have joined UK roads, making the UK the third largest BEV market in Europe by volume.

However, challenges lie ahead with the Zero Emission Vehicle Mandate in place, requiring 10% of every van manufacturer's sales in the UK to be BEVs this year. Overcoming barriers like insufficient public chargers is crucial, demanding significant infrastructure investment. A long-term commitment to the Plug-in Van Grant is also needed to ensure a smooth and equitable transition for operators across the country.

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