UK LCV Market 2025: CPD Industry Insight

The latest SMMT figures show that 2025 has been a testing year for the UK light commercial vehicle (LCV) market, with registrations down 10.3% to 315,422 units. However, beneath the headline decline sits a more constructive story, one that highlights how the market is evolving, where opportunities remain, and why the role of specialist partners has never been more important.

From CPD’s perspective, this has not been a year of reduced need for commercial vehicles, but a year where buying behaviour has become more considered, more strategic and more focused on long‑term value.

A More Measured Market, Not a Disappearing One

Fleet investment slowed across much of the year, with December the only month to record growth. Medium vans experienced the sharpest decline, while large vans still accounted for two‑thirds of all registrations. This remained the backbone of the market despite a near‑10% drop in volume.

Rather than signalling a lack of demand, this trend reflects businesses taking a more cautious and deliberate approach to replacement cycles. Operators are holding onto vehicles for longer, scrutinising specifications more closely and seeking solutions that deliver flexibility and reliability over the full life of the asset.

This shift plays directly to CPD’s strengths: helping customers secure vehicles that are right the first time, available when needed, and built to support productivity from day one.

Changing Requirements Across Vehicle Segments

While overall volumes fell, growth in small vans and 4x4s points to changing operational strategies. Some businesses are downsizing, others are adding complementary vehicles to existing fleets, and many are rethinking how vehicles are deployed across multiple roles.

Growth in heavier rigid vehicles, particularly electric-only rigids, also highlights how targeted use cases are already driving adoption where the operational fit is right. These are often specialist applications where access restrictions, urban routes and predictable duty cycles make alternative powertrains viable today.

For CPD, this underlines a key market reality: demand is becoming more specialised. Off‑the‑shelf solutions are no longer enough, and bespoke vehicle builds are increasingly essential to meet real-world requirements.

EV Uptake: Momentum Is Building

Electric van registrations grew by more than 36% in 2025, reaching a new annual record. In a contracting market, that level of growth is a clear signal of long‑term direction, backed by significant manufacturer investment and an expanding model range.

While EVs still represent a relatively small share of total registrations, progress is being made year on year. More importantly, conversations around electrification are becoming more practical and informed. Customers are no longer asking *if* they should consider EVs, but *how* and *where* they can be deployed effectively.

At CPD, we’re seeing increased demand for phased electrification strategies, mixed‑power fleets and tailored conversions that allow businesses to transition at a pace that suits their operations, not one dictated purely by regulation.

Opportunity in a More Complex Landscape

The challenge facing the industry is clear: bridging the gap between regulatory ambition and operational reality. However, complexity also creates opportunity. Businesses need guidance, flexibility and partners who understand the full vehicle lifecycle, from funding and specification through to conversion and deployment.

As operators navigate infrastructure constraints, cost pressures and changing legislation, the value of an end‑to‑end vehicle partner becomes increasingly clear. This is where CPD continues to support customers by simplifying decision‑making and delivering solutions that work in the real world.

CPD Outlook

While 2025 may be remembered as a slower year for registrations, it has been a pivotal one for market behaviour. Buyers are more engaged, more informed and more focused on long‑term outcomes.

Looking ahead, CPD expects demand to remain steady but selective, with continued growth in bespoke builds, flexible funding options and vehicles designed around specific operational needs. As the market adapts, those who can offer expertise, availability and adaptability will be best placed to support customers through the next phase of change.

For CPD, this evolving landscape reinforces our role as a vehicle conversion specialist built around flexibility, insight and long‑term partnership.

Reference: SMMT data published 6 January 2026:https://www.smmt.co.uk/van-market-shrinks-in-2025-despite-ev-growth/