Industry News

Supply constraints cause LCV market to suffer in 2022

posted on 11/01/2023
Supply constraints cause LCV market to suffer in 2022

“Throughout 2022 franchised dealers have reported strong demand for light commercial vehicles under 3.5 tonnes, but the continued restrictions to component supply have frustrated manufacturers in their ability to produce sufficient new vehicles to match orders”, said Sue Robinson, Chief Executive of the National Franchised Dealers Association which represents car and commercial retailers across the UK commenting on the latest SMMT Light Commercial Vehicle registration figures.
 

In 2022, total LCV registrations fell by –20.6%, from 355,380 units to 282,139 units, a disappointing year for the sector. 
 

December registration figures revealed a –25.8% decrease year on year, from 29,404 units sold to 21,825 units.  
 

All sectors experienced decline, from the sub-2.0t vans that are so often used as service vehicles (-65.4%), to the large LCV’s 2.5-3.5tonnes that dominate the market (-14.4%), which went from 243,889 units in 2021, to 208,728 in 2022. 
 

On a more positive note, Battery Electric Vehicles (BEV) have jumped from 3.6% last year, up to 5.9% this year. Going forward, potential consumers in non-metropolitan areas and in low-emission zones (LEZ) will want to see better provisions for public charging infrastructure which are more geared towards LCVs, as opposed to cars, before they make their transition to electric. 

The market was dominated by models such as the Custom Transit and big Transit in first and second position, while Mercedes Sprinter took third place. While Ford leads with 105,913 vehicles registered to the road, Stellantis Group closely followed with 73,258 units, made up of Vauxhall, Peugeot, Citroen, and Fiat. 

Sue Robinson added: “As demand remains buoyant and component supplies start to ease, industry pundits and franchised dealers are optimistic for sales figures in 2023, despite the recent downturn in the economy. Automotive retailers continue excel in the face of adversity and will continue to provide customers with highest level of service for the coming year.” 

*Article Source www.rmif.co.uk

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