Van Dealers Face Significant Challenges as Sales Drop by 12% in May

Modern van on a rural road captures van sales decline context.

Sales Slide for Van Dealers: What's Behind the Decline?

The van market has faced significant challenges in May 2025, with sales plunging by 12% to just 22,796 vehicles. This marks the sharpest drop during May since 2022 and represents a worrying trend, as it is now six consecutive months of decline. The slowdown is attributed to businesses holding back on fleet renewals, signaling a cautious economic approach as confidence wanes.

Market Breakdown: From Big to Small Vans

Taking a closer look at sales figures reveals a diverse performance across different van sizes. Large vans, which typically dominate the market, saw a drop of 14%, landing at 14,652 units sold. Meanwhile, medium and small van sales fell by 9.2% and 7.8%, respectively. Interestingly, the new 4x4 segment bucked the trend, growing by an impressive nearly 37% to 716 units. This indicates that while standard van sales are faltering, there is a niche market out there still thriving.

Electric Vans: Falling Short

Despite the government’s push for stricter emissions targets, electric vehicles (EVs) have not gained the expected traction in the van segment. In May, they accounted for only 7.6% of total sales, significantly below the required 16% target set for 2025. This shortfall raises concerns about the feasibility of achieving climate goals in the automotive sector.

The Future Outlook: Challenges Ahead

Mike Hawes, the chief executive of the Society of Motor Manufacturers and Traders (SMMT), emphasizes that persistent declining demand reflects a tough economic landscape paired with weak business confidence. He also pointed out that recent tax hikes on double-cab vans could hinder any potential recovery. For van dealers, navigating this tough environment will be critical in the coming months as they look for ways to adapt and potentially revive sales.

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