FOR the first time in many months, there was an increase in registrations of light commercial vehicles, up to 3.5 tonnes.
Sales of light commercials rose by 7.1% in July with 27,701 units, according to the latest SMMT figures. Much of this is considered to be demand for vehicles that would have been acquired earlier this year. Year to date, the market is down by 39%.
The National Franchised Dealers Association said that current stocks of panel vans are reasonably high, which is allowing for prompt deliveries to customers. If demand holds up going forward, a situation could arise where availability is restricted due to factories across Europe not being fully operational.
The better sellers in July were the medium-sized vans 2.0-2.5t vans, which were up by 12.0%, and the large 2.5 – 3.5t vans, which experienced an increase of 5.4%. Light commercials that are generally acquired by commercial/fleet buyers are used in the online delivery territory.
Smaller ‘car derived vans’ under 2 tonnes lost ground as they were down -22.0%. This is owed to these small vehicles often being run as service vans and they are also bought heavily by the self-employed.
There was a substantial 78.1% increase in 4×4 demand, but this class of vehicle represents a very small fraction of total LCV registrations.
Mike Hawes, SMMT Chief Executive, said, “With lockdown restrictions rolling back and businesses restarting operations, the van market is beginning to look more positive. Growth is likely to have been driven by pent up demand and the re-emergence of sectors such as construction.
“However, these green shoots of recovery could prove fragile given the uncertain economic situation. With new technology coming to the market and the need for operators to renew their fleets, maintaining overall business confidence will be crucial.”
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