The UK’s new light commercial vehicle (LCV) market declined for the seventh consecutive month in July, down -20.7% to 18,722 units, according to the latest figures published by the Society of Motor Manufacturers and Traders (SMMT).
The decline, despite strong order books, is the result of ongoing global supply shortages, with last month’s registrations total -23.9% below the pre-pandemic five-year average for July.
July saw a fall in registrations across all LCV segments, with 14,782 new vans weighing above 2.5 tonnes up to 3.5 tonnes registered in the month, -11.2% below 2021. The number of lighter vans weighing less than or equal to 2.0 tonnes dropped by -20.3%, while those weighing more than 2.0 tonnes to 2.5 tonnes declined by -49.8%.
One-in-three van models on the market is now available with a plug, and demand for these vehicles continues to increase with 765 BEVs registered in July - up 21.2% - a continuation of increased uptake seen in the first six months of 2022. There have been 8,865 BEVs registered in the year to date, an increase of 55.7%. This still represents only one in 18 of all vans registered so far in 2022 but is up from one in 37 a year ago.
With the semiconductor shortage expected to begin to ease during 2023, volumes for that year are anticipated to reach 357,000 units, a 16.4% rise.
Meanwhile, new car registrations fell by -9.0% to reach 112,162 units in July, marking the fifth consecutive month of decline, although the fall is the smallest recorded this year.
Declines were driven primarily by a -18.2% fall in registrations by large fleets, to 50,014 units, while consumer registrations remained steady at 59,847 units. As a result, private registrations in the year to date are now 3.7% up on 2021 as manufacturers prioritise private customers.
Battery electric vehicle (BEV) uptake grew 9.9% to 12,243 units, representing a 10.9% market share for the month. Although this is the weakest monthly uplift recorded by BEVs since the pandemic, overall growth in the year has reached 49.9% to deliver a 13.9% market share. July was a weaker month for hybrid electric vehicle (HEV) uptake, with registrations falling 6.7% to take 12.2% of the market. Plug-in hybrids (PHEVs) fell 34.0% which cut their market share to 5.8%.
The outlook for the full year has therefore been revised downwards to 1.6 million new car registrations – a 2.8% fall on 2021. Plug-in market share will continue to grow, however, to reach 22.6% as manufacturers prioritise investment in zero emission vehicle production.
Although the 2023 outlook has also been revised downwards since the SMMT’s April estimate, it is likely to be an improvement on 2022, with overall registrations anticipated to reach 1.89 million (rather than 2.02mn), with plug-ins comprising 27.8% of the market.
