Following two years of record growth the number of new vans registered in September fell by just over 4% as economic and political uncertainty knocks business confidence.
LCV registrations have dropped 3.1% overall year-to-date, a hint that business confidence has been dented somewhat. This may be a cause for concern for some within the industry but we don’t necessarily think it’s as serious as it may sound. At least, not yet.
Yes, there is a certain amount of economic uncertainty but the van market is still at an historic high.
The success of the light commercial vehicle sector is a good indicator of the health of the overall economy. While new LCV registrations declined by 4.2% in September, figures from the Society of Motor Manufacturers and Traders (SMMT) still show 57,368 new LCVs were registered last month. 57,000 vans is quite a lot however you look at it.
It’s also worth noting that sales for August, traditionally a slow month for new LCV registrations, were actually up slightly on last year. Take that into account and it looks like some of those people just decided to update their vehicle early. The rest are probably just biding their time while they work out what’s happening with proposed clean air legislation and how it will affect their business.
On the bright side it seems demand for pickups and heavier vans was relatively stable – those figures rose 0.4% and 0.1% respectively. Demand for smaller vans – those weighing 2.5 tonnes or less – may have fallen but the market certainly isn’t stagnating. There’s a growing trend toward pickup trucks anyway, as they offer a bit more flexibility than a traditional panel van for some businesses.
Mike Hawes, SMMT Chief Executive, said,
“Business confidence has taken a hit recently as economic and political uncertainty continues, so fluctuations in purchasing patterns are to be expected. We must remember that the van market remains at a historically high level but growth will depend on better economic conditions and business confidence, something government must prioritise.”
That’s a similar story to the car market which also saw a drop in new registrations in September.
It seems the same combination of economic uncertainty, and confusion over plans to get rid of diesel and petrol engined vehicles by 2040, has had a similar effect on the commercial vehicle sector.
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