REGISTRATIONS of LCVs declined in March as supply constraints and subsequent product shortages continue to impact the market.

These issues are not only affecting automotive, but also other economy sectors, such as the construction industry, whose stability is vital to the van market.

The latest figures from the Society of Motor Manufacturers and Traders saw new LCV registrations decreased by 27.6% in March to 40,613 units. Following the fall in the important plate change month of March, the market is now 23.6% below last year.

Large vans weighing more than 2.5 – 3.5 tonnes saw registrations decline by 18.9%. This is a key segment of the market representing more than 70% of all light vans sold in the UK. Following the previous month’s growth, the medium-sized van segment (>2.0 – 2.5 tonnes) saw a 27.6% decline. Year to date, this segment, which is a good indicator of the robustness of the service sector, is 11.6% below 2021’s levels.

Looking at the other segments of the market, pickups fell by 48.4% to 4,457 units; small vans experienced a significant decline, down by 70.8% to less than 1,000 units, whilst 4x4s fell by -33.3% although this is the smallest segment in volume terms (446 units).

Positively, sales of battery electric vans rose by 17.7% to 1,909 units. In the first quarter of the year, BEVs are up by an impressive 68.9%.

Ford was the market leader in March with a 41.9% share. It was followed by Vauxhall (10.4%) and Citroen, Peugeot and Volkswagen with an 8.1% market share each.

Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA), said: “Although this month’s decline is significant and was anticipated due to the ongoing supply constraints, it is important to note that pent-up demand boosted the market last year.

“Product and component shortages have certainly restrained the market in volume as although the sales of battery electric vans were up 17.7% in March, this was still much lower than the growth in previous months, indicating the downturn in product supply.

“External factors will likely impact the market in the short and medium term, but dealers are hopeful the situation will improve going forward”.

At the end of the first quarter this year, LCV registrations are down by 23.6% after three months of consecutive decline compared with a strong start in 2021, when the construction and home delivery sectors were significant drivers of demand, while Q1 in 2022 represents a 27.6% fall on pre-pandemic 2019.

Mike Hawes, SMMT Chief Executive, said: “The light commercial vehicle market has made a slower start to 2022 compared with the first quarter of last year, reflecting the cyclical nature of fleet operator investment, amid global supply shortages and increasing economic pressures.

“Targeted support from government is needed to encourage fleet renewal and a full zero emission van market. The expansion of the Plug-in Van Grant will be a positive for the sector, but equally there needs to be a greater roll-out of suitable chargepoints to ensure fleet and self-employed van operators in all regions can make the transition.”

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