July marked the seventh month of consecutive year-on-year decline for the LCV market, with last month’s light van registrations down 21% when compared to July last year.
According to the latest figures published by the Society of Motor Manufacturers and Traders (SMMT), nearly 19,000 new LCVs were registered in the UK in July, down from over 26,000 in June. Compared to pre-covid figures, last month’s LCV sales were 24% weaker than the five-year average for July results from 2014 to 2019.
The SMMT, which in April forecast that light van registrations would decline by 6.5% in 2022, now predicts that the LCV market is set to shrink as much as 14% by the end of the year when compared to a covid-stricken 2021, though its analysts do predict 16% of growth in 2023 when the semiconductor shortage expected to begin to ease.
Returning to last month’s figures, the registrations of pickups and 4x4s dropped sharply to 43% and 51% of the registrations recorded in July 2021, while light vans under two tonnes performed slightly better than the market average, with 20% less monthly sales year-on-year.
Charging infrastructure a “major concern” for van buyers
In contrast, electric vans (EVs) continue to sell in increasing numbers as we head into the second half of 2022, as there were 21% more EV registration in July this year compared to July 2021.
That said, EV sales still only account for around 5% of the overall market, and last month’s increase is considerably less promising than June’s all-electric sales figures, when EV registrations were up 52%.
Reiterating its stance on the uptake of electric vans, the SMMT says that the “shortage of dedicated electric charge points for this sector remains a critical obstacle” for EV sales in the UK, as “a majority of van buyers cite charging infrastructure as their major concern over whether an EV can meet their professional and daily needs.”
Nevertheless, this is still a promising time for the electric light van market – with nearly 9,000 BEVs registered this year so far, electric models currently make up one in 18 vans registered in 2022, an increase from one in 37 a year ago.
Good month, bad month
Just like the passenger car market, the LCV industry has been hindered by supply shortages for well over a year now, and each van manufacturer has been dealing with supply issues to varying degrees.
Renault and Toyota recorded very healthy registration numbers in July, all improving on their July 2021 registration figures. Market leaders Ford also outperformed the overall market by 10% in July, as did SsangYong, and Maxus.
Conversely, it wasn’t a healthy month of sales for the likes of Fiat, Citroën, Iveco, Land Rover, and particularly Vauxhall (sales down 63%). All of these brands underachieved compared to the overall market by at least 10% (and in some cases, by a lot more than that).
Ford extends commanding LCV sales lead
The LCV best-sellers list for July displays that it was business as usual for Ford last month, with three different entrants in the top ten. The Transit Custom was not only the country’s best-selling van, but the best-selling vehicle of any sort (the Nissan Qashqai was the best-selling passenger car, but with 200 fewer sales)
The Ford Transit Custom extends its lead to nearly 27,000 models sold so far this year, 6,000 more than any other model, after topping the monthly sales chart again in July. The full-size Ford Transit was just over 700 registrations behind.
The Mercedes-Benz Sprinter continues to sell in consistent numbers, maintaining fourth position in the annual sales figures for the second month, but the best of the rest continues to be the Vauxhall Vivaro in third, with close to 10,000 sales seven months into 2022. The electric version of the Vivaro, called the Vivaro-e, is also the best-selling electric LCV so far this year, with just under a third of all Vauxhall Vivaro models being EVs.
