Van sales down more than a quarter in March as parts shortages hit commercial vehicle market

Light commercial vehicle registrations were down 27.6 per cent year-on-year in March, as the van market continued to be affected by parts shortages.

The result was 40,613 van sales last month, down from 56,122 the previous year.

Both private and commercial vehicle production have been hit hard by a shortage of semiconductor computer chips following the pandemic, meaning demand is outstripping supply.

However, while the figures make for alarming reading and are below the pre-pandemic averages, the sharp decline is compared with a bumper March 2021. Pent-up demand following coronavirus lockdowns contributed to the largest increase in commercial vehicles registrations since 1999.

Looking at the figures more closely, large van sales were down 19 per cent to just under 30,000 units, while medium-sized vans were down 28 per cent to about 5,600. Small van sales saw the largest percentage decline of 71 per cent less than 1,000 units.

Mike Hawes, SMMT chief executive, said, “The light commercial vehicle market has made a slower start to 2022 compared with the first quarter of last year, reflecting the cyclical nature of fleet operator investment, amid global supply shortages and increasing economic pressures.

“Targeted support from Government is needed to encourage fleet renewal and a full zero-emission van market. The expansion of the Plug-in Van Grant will be a positive for the sector, but equally there needs to be a greater roll-out of suitable charge points to ensure fleet and self-employed van operators in all regions can make the transition.”

Electric van sales continue to represent a small proportion of the market, but did see an increase of 18 per cent year-on-year to 1,909 units. Their market share is now almost six per cent.