August marked the eighth month of consecutive year-on-year decline for the LCV market, with last month’s light van registrations down 25% when compared to August last year.
According to the latest figures published by the Society of Motor Manufacturers and Traders (SMMT), over 15,000 new LCVs were registered in the UK in August, down from the 20,000 sales recorded in August 2021.
Despite August traditionally being one of the quietest months of the year as manufacturers hold their stock for the September plate change, last month’s registration results were particularly poor. In fact, it was the lowest recorded sales volume of any month stretching back to 2017.
The SMMT announced last month that it 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, and though its analysts do predict 16% of growth in 2023, the trade association says it is increasingly concerned by the “increasingly strong economic headwinds” caused by rising energy costs and inflation.
The registrations of pickups and 4x4s dropped sharply to 52% and 50% of the registrations recorded in August 2021, while light vans over two and a half tonnes performed better than the market average, with 14% less monthly sales year-on-year.
New prime minister needs to encourage “greater charging infrastructure rollout”
In contrast, electric vans (EVs) continue to sell in increasing numbers as we head into the second half of 2022, as there were 15% more EV registration in August this year compared to July 2021.
That said, EV sales still only account for around 6% of the overall market, and last month’s increase is less promising than July’s all-electric sales figures, when EV registrations were up 21%.
With Liz Truss taking office this week, the SMMT says that the new prime minister needs to encourage a “greater charging infrastructure rollout” as well as tackle rising inflation, in order to safeguard consumer confidence and ensure that all-electric van uptake continues to grow at a steady pace.
Nevertheless, this is still a promising time for the electric light van market – with nearly 10,000 BEVs registered this year so far, annual electric light van sales are up 51% compared to this time last year.
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.
Despite their relatively small share of the market, the London Electric Vehicle Company (LEVC) and Maxus recorded very healthy registration numbers in August, both markedly improving on their August 2021 registration figures. Vauxhall and Renault also improved on their August 2021 sales figures.
Conversely, it wasn’t a healthy month of sales for the likes of Ford, Mercedes-Benz, Toyota, Iveco, and Land Rover. 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
Despite the American manufacturer’s year-on-year sales decline, Ford dominated the LCV best-sellers list in August for the eighth consecutive month this year. The brand had four 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 Volkswagen Polo was the best-selling passenger car, but with just one less unit sold in August).
The Ford Transit Custom extends its lead to nearly 29,000 models sold so far this year, 7,000 more than any other model. Beyond the full-size Ford Transit in second, the Vauxhall Vivaro remains in third as it holds on to the annual ‘best-of-the-rest’ accolade. 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.
The Mercedes-Benz Sprinter continues to sell in consistent numbers, maintaining fourth position in the annual sales figures for the third month running, and entrants from Stellantis sister brands Peugeot, Renault and Citroën also appear in the monthly top ten.
