Supply issues hit van sales Van values at auction running at record highs Vauxhall takes lead in electric van sales

Van sales fell for the fi rst time since December 2020 with registrations down by 14.8%, according to fi gures from the Society of Motor Manufacturers and Traders (SMMT). Supply issues – most notably of semiconductors – has meant only 23,606 vans were registered during the month.

Despite this challenge, the month’s performance was a “moderate” 4% decline compared to the pre-pandemic fi ve-year average, says the SMMT.

Demand for larger vans weighing more than 2.5-3.5 tonnes, which comprise the majority (70.5%) of all commercial registrations in the month, saw a decrease of 5.2% to 16,653 vehicles. Other van segments saw more signifi cant declines in demand compared to 2020, with registrations of vans weighing less than or equal to 2.0 tonnes down 38.2% and those of vans weighing more than 2.0-2.5 tonnes down 41.4% to 907 and 2,680 vehicles respectively.

However, year-to-date registrations remain up 57.5% on last year – some 78,542 more units – with the market also increasing by 1.1% on the pre-pandemic 2015-2019 fi ve-year average.

In total 215,119 new vans have exchanged hands so far in 2021. The SMMT says the increase in sales over the course of the year has been driven by growth in demand from operators who continue to renew and expand their fl eets, notably to meet rising demand for online delivery business and the construction sector.

Mike Hawes, SMMT chief executive, said: “While July’s decline in the new van market is disappointing, it must be viewed in context against the semiconductor shortages currently challenging the global industry.

“Given the shift to home-deliveries Fleet renewal critical to meet ambitious green targets

and the strength of the construction sector, and as the economy opens up further, we expect the market to end the year almost back to 2019 levels. Fleet renewal is critical, not only to ensure the newest, cleanest and greenest vans enter UK roads, but to enable the UK to meet its ambitious green targets.”

Vauxhall has taken the crown as the UK’s best-selling electric LCV manufacturer, according to the latest sales and registrations fi gures from the SMMT.

The company has sold 1,560 electric vans so far this year. It now has an electric van across its entire LCV line-up, following the announcements of its new Movano-e large van and the Combo-e compact van, which made their global debut at this month's CV Show (pictured).

Vauxhall says its sales success so far this year was underpinned by the all-electric Vivaro-e, the best-selling model year-to-date in the electric van sector.

Paul Willcox, managing director, Vauxhall, said: “As a British brand, I’m proud to see Vauxhall is leading the electrifi cation of the UK van market with our multiple award-winning Vivaro-e.

“Vauxhall is all about democratising access to electrifi ed vehicles and within a month we will have an all-electric version of every van we sell."

Used van values continue to strengthen, with Cox Automotive reporting the average selling price of a used van sold at its Manheim auctions in July was over £10,000, for the second consecutive month. This follows an increasing trend in used van values, fi rst seen in the fi rst four months of 2021, as well as June and July, says Cox.

In July, the average selling price of a used van at Manheim auctions was £10,189, with an average age of 61 months and 73,493 miles. Although this represented a slight reduction of £33, compared to the record-breaking result in June, both mileage and age did increase by one month and 2,650 miles respectively.

Compared to July 2020, used vans achieved £2,110 or 26% more, despite being three months older and having 4,673 more miles. Comparing today’s average LCV selling prices with a pre-pandemic July in 2019, vans are achieving £3,721 or 57% more, with today’s vans being two months older and having 1,886 more miles.

Matthew Davock, director of commercial vehicles, said, “It will come as no surprise to many that buyers of vans are paying more because of the supply shortages in the used market, which Cox Automotive warned previously would continue until next year, when the supply issue is resolved.

“The overall wholesale return volumes remain a challenge, especially in the fl eet/leasing LCV sector, with many who did sell volume in July reporting a reduction of 36-43% compared to traditional month returns. The buzz-word in this sector, as well as many other sectors right now, is ‘customer extensions’.”

With global new manufacturing challenges and the lack of new vehicle supply and availability in the UK, many customers’ replacement orders have been extended into Q1/Q2 2022, resulting in a fi nancial dilemma for the fl eet and rental sectors.

“This is because there’s simply never been a better time to sell a used van” said Davock. “Those lucky enough to be selling used vans are enjoying strong profi ts, even though their extended product stock has both higher maintenance and higher mileage concerns.”

Remarketing specialists BCA report a similar trend over the last 12 weeks with average LCV values well ahead year-on-year. BCA says values reached the highest point on record in recent weeks, passing £10,000 for the fi rst time in July.

“Buyers continue to compete strongly for the stock on offer” said a BCA spokesperson. “The used LCV sector is experiencing a perfect storm, with the home delivery, courier, self-employed trades and also the leisure vehicle sector experiencing high demand for vehicles.”