The UK light commercial vehicle (LCV) market has shown signs of recovery with a 1.7% growth in August, according to the Society of Motor Manufacturers and Traders (SMMT).

This comes after two months of decline and is the best performance for the month since 2021.

A total of 16,575 vehicles, including vans, 4×4s, pickups, and taxis, were registered, ahead of the September plate change.

The smaller van segment, with vehicles weighing up to 2t, saw an increase of 24.5% to 427 units, driven by the introduction of new models.

Medium-sized vans, weighing between 2t and 2.5t, also experienced growth, with registrations up 1.9% to 2,771 units.

The largest vans, weighing over 2.5t to 3.5t, continued to dominate the market, increasing by 1.8% to 11,753 units and holding a 70.9% market share.

However, the 4×4 and pickup segments did not perform as well, recording declines of 12.9% and 2.5% respectively, contributing to a combined total of 1,624 units.  

Notably, battery electric van (BEV) registrations decreased for the third successive month this year, and the fifth time overall, with 908 vehicles registered, a 30.3% drop from the previous year.

BEVs now represent only 5.5% of all new vans in August, a decrease from 7.9% in the same month last year.

Despite the growing number of manufacturers introducing zero-emission vehicles, the BEV market share over the year-to-date has halved to 5.1%, below the 10% zero-emission vehicle mandate target.

Overall, the year-to-date van market has grown by 2.7% to 218,884 units, with all segments showing an increase.

In contrast, the UK new car market experienced a slight downturn in August, with a 1.3% drop in registrations, as per SMMT data.

SMMT chief executive Mike Hawes said: “A return to growth for Britain’s new van sector is encouraging as the market continues its post-Covid recovery.

“Manufacturers continue to produce a range of new models, with many of these zero emission. However, such a significant and sustained drop in demand for electric vans is of deep concern given the ambitious and mandated sales targets required this year and beyond.

“There is a pressing need to stimulate operator confidence which means providing long-term certainty over the Plug-in Van Grant, maintaining fiscal incentives, and accelerating the rollout of van-suitable charging infrastructure. Without these measures, the ability of the UK to meet its net zero goals while driving economic growth will be put under pressure.”