Van registrations drop after period of ‘stellar’ growth08 June 2017

Van and light commercial vehicle registrations fell last month (May) by 5.3%, as the market rebalanced after two years of exceptional demand.

That’s the key finding from the latest Society of Motor Manufacturers and Traders data, released this week.

The medium and large van segments both registered a decline, but the figure was improved by strong demand for pick-ups, which were up by more than 26% compared to the same month last year.

Small vans also fared better, with just a 0.8% decline for those under 2 tonnes.

Mike Hawes, SMMT chief executive, said the result was expected after a period of “stellar growth” for LCVs.

He added: “To put this performance into context, overall demand remains strong with year-to-date registrations up 51.2% compared with the same period five years ago, and we expect demand to remain stable at similar levels throughout the year.”

The SMMT also released data recently showing that commercial vehicle production fell by more than 28% in April, as bank holidays affected plant output.

Monthly output of vans, trucks, buses and coaches totalled 6,132 units – again, noted SMMT, this follows two years of very high demand and is affected by fleet buying cycles.

The year-to-date total is down (by 8%) compared with the start of 2016, but exports during Jan-Apr 2017 were up 12% on the same period last year.

Export orders accounted for almost two-thirds (64.5%) of commercial vehicle output in the first four months of the year – the highest since 2010 – highlighting that a strong trading relationship with Europe is vital, added Hawe.

Author
Laura Cork

Related Companies
Society of Motor Manufacturers and Traders Ltd

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