The UK’s new light commercial vehicle (LCV) market has recorded its weakest half-year performance since 2022, with registrations down 12.1% to 156,048 units, according to the latest data from the Society of Motor Manufacturers and Traders (SMMT).

A seventh straight monthly fall in June, down 14.8%, capped a difficult period for the sector. SMMT blamed a mix of economic pressure, low business confidence, and policy changes that are weighing on new orders.

Demand was hit hardest in the largest van segment, which fell 14.8% year-to-date to 99,790 units.

Mid-size vans declined 20.9% to 26,408 units, while 4x4s dipped 6% to 4,041 units.

Smaller vans bucked the trend with a 30.7% rise to 4,907 units. Pickup demand also rose 10% to 20,902 units, but this was driven by fleets rushing to buy before April’s tax rule change.

Since the update to benefit-in-kind (BIK) treatment for double and extended cab pickups, demand has declined for two consecutive months.

SMMT said the change adds costs for key business sectors, delays fleet renewal and keeps older, more polluting vehicles on the road.

It also warned the policy risks reducing total tax revenues due to fewer new registrations.

The organisation is urging the Government to delay the changes for at least 12 months to give fleets time to adapt and support the shift to cleaner vehicles.

Battery electric van registrations surged 52.8% in H1, reaching 13,512 units, following a 97% spike in June alone.

Despite the growth, electric vans accounted for just 8.6% of the market – well below the 16% share required by the Government’s ZEV mandate for 2025.

SMMT said many operators still face barriers such as poor access to charging infrastructure at depots, shared hubs and public sites.

It has called for preferential grid connection treatment and streamlined planning processes to help meet targets and boost fleet confidence.

Mike Hawes, SMMT chief executive, said: “Half a year of declining demand for new vans reflects a difficult economic climate and weak business confidence.

“That this comes just as industry is investing in zero emission LCVs is particularly concerning. Accelerated CV infrastructure rollout, quicker grid connections and streamlined planning are now critical."