The UK light commercial vehicle market is entering a new phase, shaped by caution, delayed investment and a growing reliance on the used van sector. While much of the attention has focused on falling new registrations, the bigger story is how businesses are adapting to uncertainty and reshaping their fleet strategies.
Across the country, operators are extending vehicle lifecycles, sweating assets for longer and turning to the used market not as a compromise, but as a deliberate and strategic choice. Used vans are increasingly seen as a way to maintain operational resilience while managing cost and risk.
Industry data from the Society of Motor Manufacturers and Traders shows that the UK new light commercial vehicle market declined by 10.3% in 2025, with 315,422 registrations recorded. Most segments contracted amid weak business confidence and a challenging economic climate, with fleet renewal falling in every month except a modest uplift in December. This is not a short term dip, but a clear signal that many organisations are delaying major purchasing decisions, reassessing costs and prioritising flexibility over long term commitment.
Electric vans are moving forward, but at a slower pace than expected
Electric vans are moving forward, but at a slower pace than policy targets require. Battery electric van registrations rose by 36.2% year on year in 2025, yet electric models accounted for just 9.5% of the total market. This remains well below the 16% mandate, and with significantly higher targets set for 2026, the gap between ambition and market reality is widening.
Interest among operators is growing, but practical barriers continue to limit faster adoption. Higher upfront purchase costs, delays in securing grid connections for depot charging and a lack of public charging infrastructure suitable for commercial vehicles remain key challenges. Until these issues are addressed and electric vans align more closely with day to day operational needs, uptake is likely to remain gradual rather than transformational.
Market pressures are reshaping fleet behaviour
One of the clearest trends is the extension of fleet lifecycles. Many businesses are now keeping vehicles for sixty months or more. As a result, vans returning to the market typically carry higher mileage and require more extensive refurbishment before resale. This places greater responsibility on retailers to invest in preparation and ensure vehicles meet rising buyer expectations.
At the same time, demand for quality used vans remains strong. Despite the slowdown in new vehicle sales, buyers continue to prioritise value, reliability and immediate availability. This has reinforced the importance of consistent supply, transparent pricing and high preparation standards within the used sector.
A leadership perspective on navigating change
According to David Spear, the changing landscape means businesses need more than just vehicles.
“The LCV market is moving quickly, and customers are looking for guidance as much as stock,” he said. “At David Spear Commercials, we have invested heavily in the quality of our used vans, refurbishment processes and supply chain so our customers are protected from volatility in the wider market.”
He added that agility has become one of the most important competitive advantages in the sector.
“We are constantly reviewing market data and adjusting our approach, sometimes on a daily basis. Speed of decision making and the ability to adapt are now critical.”
Leading through transformation, not reacting to it
While the current environment presents challenges, it also creates opportunity. Businesses that remain agile, understand customer intent and prepare for a return in new vehicle confidence will be best placed to grow when conditions improve.
“The road ahead will not be straightforward,” David Spear said. “But for those willing to adapt, there is real opportunity. We will continue to provide insight, quality supply and strategic support as the market evolves.”
