Van market grows in 2024 as diesel dominates

Motor Journalist

Phil Huff began his career in journalism in 2002, initially covering Formula One before testing and writing about the latest cars, vans and pick-ups for a wealth of national and regional...

Published January 14, 2025

Against a backdrop of economic uncertainty, the UK van market delivered its strongest performance in three years in 2024.

New registrations of light commercial vehicles (LCVs) hit 351,834, with strong December sales of 27,221 units driving a growth in the market of 3%.

Almost every category of van saw demand increase. Registrations in the large van sector, dominated by the Ford Transit and Ford Transit Custom, rose by 2.1%, giving the sector a 66.3% share of the total market. Mid-sized van registrations increased by 12.3%, notching up 65,148, but the small van sector saw the most impressive growth, with a 44.5% increase to 8,606 units.

Not all vehicle segments fared so well. 4x4s saw a drop of 9.7% in new registrations, managing just 7,282 units in the 12 months. The pickup market declined by 8.3%, with 37,582 registrations — a drop of 3,421 units from 2023. This isn’t likely to improve in the year ahead as the government’s decision to tax double-cab pickups as cars for benefit-in-kind and capital allowance purposes comes into force in April. The change will add extra financial burdens to businesses and tradespeople relying on such vehicles.

Electric demand stalls

There was slight growth in the battery electric van (BEV) sector, with a rise of 3.3% to 22,155 units. Market share remained steady at 6.3%, with adherence to the UK’s Zero Emission Vehicle (ZEV) mandate failing to gain significant momentum. Fleet operators remain cautious about switching to electrified vehicles despite over half of all new LCV models being available with a zero-emission option.

This stagnation has led to calls from industry leaders, including the Society of Motor Manufacturers and Traders (SMMT), to call for a review of the ZEV mandate.

“Vans, 4x4s and pickups keep businesses everywhere on the move, making this sector a barometer of the UK economy," says SMMT chief executive Mike Hawes. "The best overall volume in three years, therefore, is good news with van makers striving to deliver abundant and competitive EV choice. Buyer confidence, however, will inevitably be undermined when charging infrastructure does not meet the needs of fleet operations. A review of EV regulation is crucial, therefore, to reflect current market realities and ensure ambitions are deliverable, without any negative and costly consequences.”

Stellantis leads eLCV

The accolade of the UK’s top electric van manufacturer stayed in the hands of Stellantis in 2024, with 7,821 BEVs registered. With this totalling more than the second and third-placed offerings combined, Stellantis, whose brands include Citroen, Fiat, Peugeot, and Vauxhall, currently has a 35.6% share of the electric van market.

The manufacturing behemoth’s Peugeot brand was the most successful, selling 4,105 electric vans in 2024 and almost doubling its electric LCV market share to 18.69%. The Peugeot E-Partner was the best-selling compact electric-LCV, with the medium-sized Peugeot E-Expert bagging second place in its segment.

A partnership between the Royal Mail and the manufacturer played a key role, seeing 2,100 electric vans delivered as part of a long-term supply agreement.

Diesel dominates

Traditionally-fuelled vehicles still dominate the sales charts despite the efforts to shift market focus towards electric vans. Ford retains its top spot, with the Ford Transit Custom registering 46,967 units and remaining the UK’s best-seller. 31,332 full-sized Ford Transit van registrations ensured the manufacturer took second place, too. Despite the fall in the UK pickup market, the Ford Ranger pickup saw 19,695 registrations, making it the UK’s third-best-selling LCV, with its best year to date.

The Mercedes-Benz Sprinter and the Vauxhall Vivaro had strong results, with 18,753 and 18,581 units respectively. Volkswagen’s Transporter (15,425 registrations) and the Renault Trafic (14,857 registrations, pictured below) also performed well, ending the year in sixth and seventh place, respectively. The Peugeot Expert, Vauxhall Combo, and Citroën Berlingo, all from Stellantis, were all separated by fewer than 600 units and rounded out the top 10 market competitors.

Business challenges

There are challenges ahead for the LCV market. The taxation blow from the government to the pickup market will almost certainly stifle demand further, and tradespeople could hold on to older, more polluting vehicles for longer. In the meantime, hitting the steep ZEV mandate targets will require a substantial increase in the number of BEVs adopted in the sector.

While progress might be slower than the government has hoped, this resilient market is adapting. Stellantis has succeeded in meeting the ZEV-mandated targets without the need to purchase credits, demonstrating what can be achieved when strategy and investment align.

Stellantis Managing Director Eurig Druce does, however, point out that there will need to be more support from policymakers to boost consumer uptake if long-term targets are to be achieved: “If the UK is to achieve its transport emission ambitions, and for EVs to represent 80% of new cars sold in 2030, then consumers are going to need more encouragement from government to do so”.

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