UK Van Market Slows in 2025 — But Electric and Heavy-Duty Demand Accelerate

The UK’s light commercial vehicle (LCV) market faced a challenging year in 2025, with overall registrations falling by just over 10% as many businesses delayed fleet replacement decisions amid ongoing economic uncertainty.

In total, 315,422 vans, pickups and light commercial vehicles were registered during the year. While demand softened across most months, December delivered a modest uplift, suggesting some late-year confidence returning as businesses moved to refresh fleets before year-end.

Fleet Renewal Put on Hold

Fleet investment slowed across much of the market, particularly in core working vehicle segments. Medium-sized vans experienced the sharpest contraction, while larger vans also saw notable declines — although they continued to dominate overall demand.

Despite the downturn, the market did not contract evenly, with some vehicle categories bucking the trend.

How Different Vehicle Segments Performed

Medium vans (2.0–2.5 tonnes) recorded the steepest drop, down more than 20%, reflecting delayed replacement cycles.

Large vans (2.5–3.5 tonnes) fell by just under 10%, yet still accounted for two-thirds of all registrations, reinforcing their role as the backbone of UK commercial fleets.

Pick-ups slipped slightly overall, despite a strong start to the year, as businesses moved early to avoid upcoming tax changes affecting double-cab models.

Small vans and 4x4s delivered modest growth, indicating steady demand from niche operators and urban-focused businesses.

A standout trend came from the heavier end of the market.

Rigid Vehicles Surge Ahead

Registrations of rigid vehicles rose sharply in 2025, with growth of more than 65% year-on-year. This reflects increased demand from specialist sectors such as logistics, utilities, infrastructure, and emergency services — particularly as businesses seek alternatives to traditional large vans for payload and operational efficiency.

Electric Vans Reach New Highs — But Adoption Still Lags Targets

One of the most positive developments of the year was the continued rise in battery electric van (BEV) registrations. Volumes climbed by over 36%, reaching a new annual record of more than 30,000 units.

Manufacturers have significantly expanded choice, with over 40 zero-emission van models now available, covering a wide range of body styles and use cases. However, this progress has come at a cost. To stimulate demand, manufacturers collectively supported sales with hundreds of millions of pounds in incentives and discounts.

Even with this support, electric vans accounted for less than 10% of total registrations in 2025 — well below policy targets — highlighting a persistent gap between ambition and real-world readiness.

The UK’s Most Popular Commercial Vehicles in 2025

Despite overall market softness, several familiar models continued to dominate fleet orders:

1. Ford Transit Custom
   
2. Ford Transit
   
3. Ford Ranger
   
4. Mercedes-Benz Sprinter
   
5. Vauxhall Vivaro
   
6. Renault Trafic
   
7. Volkswagen Transporter
   
8. Volkswagen Crafter
   
9. Citroën Berlingo
   
10. Peugeot Partner
    

These vehicles remain popular due to proven reliability, strong dealer networks, and suitability for a wide range of business applications.

What’s Holding the Market Back?

While vehicle choice has expanded, several obstacles continue to limit faster adoption of newer technologies:

• Higher upfront costs for electric vans
  
• Limited public charging suitable for commercial vehicles
  
• Long lead times for depot power upgrades
  
• Operational uncertainty for businesses reliant on uptime
  

Recent support measures — including grant extensions, depot charging schemes, and proposed planning reforms — should help ease the transition. However, with mandated zero-emission targets set to rise sharply again in 2026, further alignment between regulation, infrastructure, and real-world business needs will be critical.

What This Means for UK Businesses

For fleet operators, 2025 reinforced the importance of flexibility, planning, and expert support. Businesses that delayed renewal may face tighter supply and higher costs ahead, particularly as electrification requirements accelerate.

At Find and Finance, we work closely with commercial clients to navigate these shifts — sourcing the right vehicles, structuring funding intelligently, and providing a fully managed motoring solution that removes complexity during uncertain market conditions.

As the commercial vehicle landscape continues to evolve, informed decision-making will be key to keeping fleets moving efficiently and cost-effectively.