UK van market remains buoyant as new car registrations slow to a crawl

According to the Society of Motor Manufacturers and Traders (SMMT), new van registrations rose 1.5% in August to 15,619 units. And yet, the UK car market experienced a notable drop-off over the same period, falling 6.4% to 76,433.

This marginal rise in light commercial vehicle (LCV) sales represents the market’s strongest August since 2005. Smaller vans weighing 2.0 to 2.5 tonnes drove that growth, with a 39.9% surge in registrations, while the pickup market moved from strength to strength, rising a further 8% in August.

Demand for heavier vehicles fell for the fifth consecutive month however, with registrations for vehicles weighing 2.5 to 3.5 tonnes down 0.6%. In comparison to the same period the previous year, pickups and LCVs have risen 14.4% and 11.4% respectively, while heavier van registrations have fallen 4%.

SMMT Chief Executive Mike Hawes had this to said: “August is traditionally one of the quietest months of the year, ahead of September’s plate change, so the moderate increase in the new van market is welcome news. While year-to-date figures show demand easing, this is in line with market expectations and overall registration volumes remain at a very high level. This stabilising of the market is indicative of what we can expect for the remainder of the year.”

Meanwhile, the UK car market also experienced a fifth consecutive month of decline. It’s a disappointing trend, especially after last year’s record-breaking August, but not the whole picture. With more than 76,000 new cars registered, last month’s performance represents the third biggest August since 2007.

Superminis and small family cars remained the most popular vehicles in August, accounting for more than half (58.3%) of all car registrations. SUVs, larger family cars and executives were the only market segments to grow however, up 7.9%, 2.2% and 1.1% respectively.

But for Mike Hawes there was little cause for concern: “With the new 67-plate now available and a range of new models in showrooms, we anticipate the continuation of what are historically high levels of demand.”

Demand for petrol hybrid and pure electric battery powered cars also rise sharply, up 74.9% and 62.5% respectively, while plug-in hybrid registrations leapt 38.5%.

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