UK van market falls as EV demand falters and pickup registrations plummet

The UK van market has made a weak start to 2026, with falling registrations driven by collapsing pickup demand and slower-than-needed uptake of electric vans.

Latest figures from the Society of Motor Manufacturers and Traders (SMMT) show the light commercial vehicle (LCV) sector is under increasing pressure from tax changes, economic uncertainty and the looming Zero Emission Vehicle (ZEV) mandate targets.

Pickup market collapses after tax changes

The headline drop in registrations has been largely driven by a dramatic fall in pickup demand.

Registrations of pickups plunged by more than 50% year-on-year, following changes to government tax rules which now treat most double-cab pickups as cars for benefit-in-kind and capital allowance purposes.

The sharp decline had been widely predicted by the industry, with many buyers bringing purchases forward into 2025 ahead of the changes.

Overall van market declines

Across the wider LCV sector, registrations fell by 7.8% in January, marking the weakest start to the year since 2012.

While large vans (2.5–3.5 tonnes) continued to grow and remain the backbone of the market, smaller and medium van segments both recorded significant declines.

The figures highlight continued caution among businesses, with investment decisions impacted by wider economic pressures.

EV demand rising — but still far behind targets

Battery electric van uptake did increase, rising by around 26% year-on-year and taking just over 10% market share.

However, that remains well short of the 24% ZEV mandate target for 2026, underlining a growing gap between policy ambition and real-world demand.

Despite an increasing number of electric van models and ongoing manufacturer discounts, operators continue to face barriers including:

• Limited charging infrastructure suitable for vans
• High upfront costs
• Concerns over operational practicality

Industry warns targets may be missed

The SMMT has already revised its 2026 outlook, lowering expected total van registrations and trimming EV market share forecasts.

Industry leaders are warning that without additional support, the sector risks missing upcoming electrification targets.

Calls are growing for:

• Greater government incentives
• Improved charging infrastructure
• Clear long-term policy direction

What it means for the trade

For garages and MOT testers, the slowdown in van sales — particularly among diesel vehicles — could have longer-term implications for workshop volumes.

At the same time, the gradual shift toward electric vans will continue to reshape servicing, repair and testing requirements across the sector.

Market under pressure heading into 2026

While parts of the van market remain resilient, the overall picture is one of uncertainty and transition.

With pickup demand collapsing and EV adoption still lagging behind government targets, 2026 is shaping up to be a challenging year for the UK’s light commercial vehicle sector.