The way people consume almost everything in the UK, even food, is changing fast and the key word is delivery, or Deliveroo if you like. We want it faster, cheaper and we want to stay home, safe behind our locked doors while packages are couriered to us by the gig economy.
What that means for insurers and brokers is more vans on the road, especially small vans, typically owned by a solo company/freelancer. Even in August, a traditionally slow month in new vehicle registrations, there was a huge surge in van sales. Here’s the latest from the SMMT:
The UK new light commercial vehicle (LCV) market rose in August, up 41.0%, according to the latest figures released today by the Society of Motor Manufacturers and Traders (SMMT). The market has grown in every month of 2019, with 23,120 new vehicles registered in August for use on UK roads, as operators respond to regulatory changes and take advantage of some compelling deals on the latest models available in what is usually one of the year’s smallest months.
Demand for small vans, weighing less than 2.0 tonnes was up 52.5%, with medium vans, weighing 2.0-2.5 tonnes and large vans, weighing 2.5-3.5 tonnes close behind, up 33.1% and 46.8% respectively. In the year-to-date the market is up 11.3% to 245,400 units.
Mike Hawes, SMMT Chief Executive, said,
“Another month of growth for the new van market is welcome news for the automotive sector as it faces multiple challenges simultaneously. It is important to remember, however, that any percentage increase will be on a much smaller volume market in August given it is arguably the quietest month of the year. Buyers continue to take advantage of deals on the latest and cleanest commercial vehicles on the market and it is important the business environment remains strong.”