The UK van market returned to growth in the first half of 2026, with registrations rising 1.7%, but the SMMT has warned that electric vehicle demand remains well below mandated levels.
New figures published by the Society of Motor Manufacturers and Traders (SMMT) show 158,648 new light commercial vehicles (LCVs) were registered during the first six months of the year, reversing the decline recorded in the same period of 2025.
June registrations increased 12.2% to 31,602 units, marking the third consecutive month of growth.
Demand was driven by larger vans, with registrations of 2.5 to 3.5-tonne models increasing 12.6% to 21,951 units, while medium-sized vans rose 62.1% to 6,795 units. Registrations of 4x4s also increased by 20.8%.
However, vans weighing less than two tonnes fell 19.3%.
Pick-up sales continue to fall
Pick-up registrations declined for a ninth consecutive month, dropping 57.6% to 1,167 units.
The SMMT said the continued decline follows changes to the tax treatment of double-cab pickups, which were reclassified for benefit-in-kind and capital allowance purposes.
It argues the changes continue to affect demand from sectors including construction, agriculture and utilities and has renewed calls for the Government to reverse the policy.
Pickups accounted for just 3.7% of the LCV market in June, down from 9.8% a year earlier.
Electric van demand remains well below mandate
Battery electric van registrations increased 23.2% during June, giving the technology an 11.5% monthly market share.
Across the first six months of the year, electric vans accounted for 9.9% of registrations, up from 8.6% during the same period last year.
However, the SMMT said the market remains a long way from the 24% Zero Emission Vehicle (ZEV) mandate target for 2026.
It estimates battery electric vans would need to account for around 40% of registrations during the remainder of the year to achieve compliance without relying on regulatory flexibilities.
The organisation said manufacturers now offer more than 40 zero emission van models, but higher purchase costs, charging infrastructure and operating cost concerns continue to limit demand.
It warned that the assumptions underpinning the current mandate no longer reflect market conditions and called on the Government to reform the regulations to support investment while maintaining progress towards decarbonisation.
SMMT calls for mandate reform
Mike Hawes, SMMT chief executive, said: “The LCV market’s return to growth is encouraging, but it comes against a backdrop of lower volumes and significant market disruption over the past 18 months, not least the sharp fall in pickup demand after tax changes.
“While businesses continue to invest in new vans, zero emission uptake remains well below ambition, holding back the fleet renewal needed to deliver net zero.
“A successful transition requires regulation, infrastructure and incentives to work together, giving operators the confidence to invest.
“With the gap between targets and demand continuing to widen, urgent reform of the mandate is needed to keep the transition on track.”