The UK mild industrial car (LCV) market fell by -24.6% to fifteen,520 items throughout what’s historically one of many quietest months of the yr forward of the September plate change
The UK mild industrial car (LCV) market fell by -24.6% to fifteen,520 items throughout what’s historically one of many quietest months of the yr forward of the September plate change. The efficiency means LCV registrations have declined each month of 2022, with August registration volumes the bottom recorded for the month since 2017.1
The dimensions of the decline is artificially inflated as compared with final yr, nevertheless, as August 2021 was the second greatest efficiency on document for the reason that introduction of the two-plate system.2 For 2022, nevertheless, world provide chain challenges have acted as a handbrake on registrations, albeit the affect has been erratically distributed throughout car segments. The rising financial headwinds are additionally a priority.
Each LCV class recorded a decline, with registrations of vans weighing greater than 2.5 tonnes falling by -14.0%; vans weighing greater than 2.0 tonnes to 2.5 tonnes down -45.3%; and of these equal to or lower than 2.0 tonnes, -44.1%. The most important decline was recorded in pick-ups, which noticed registrations fall by -52.2%, whereas 4x4s, the smallest phase by quantity, declined by -49.7%.
In additional optimistic information, battery electrical car (BEV) registrations rose by 14.7% to achieve a 6.1% market share (from 4.0% a yr in the past) as extra operators proceed to recognise the appreciable advantages out there, together with buy incentives, decrease taxation, exemptions from congestion and clear air zone fees in city areas, and naturally, zero emission mobility. BEV volumes are up 50.6% over the yr up to now.
With August historically being a low quantity month as operators select to delay the acquisition of latest autos till the ‘new plate month’ in September, subsequent month shall be essential for the business struggling to repeat the success it noticed in 2021. Yr up to now, LCV registrations are down -24.2% on 2021 and -27.2% on pre-pandemic 2019.3
Mike Hawes, SMMT Chief Government, stated,
Final yr’s bumper LCV market meant it was at all times going to be difficult to repeat that success in 2022, and more and more sturdy financial headwinds and provide chain challenges proceed to check the market. Good progress is being made within the transition to electrical, however accelerating the swap will want motion from the brand new Prime Minister to sort out vitality prices and inflation, whereas additionally encouraging better charging infrastructure rollout, so that companies can have better confidence to improve their van fleets to cleanest, greenest fashions.
August’s figures replicate a brief interruption to registrations processing at one producer in July attributable to a deliberate techniques improve affecting a restricted variety of autos. This doesn’t materially have an effect on the general market efficiency.
1. Registrations August 2017: 15,619
2. Registrations August 2021: 20,582; August 2019: 23,120
3. Registrations Jan-Aug 2019: 245,400