- Insights

LCV Market Update – Autumn 2021

In a world where the virus itself is talked about less and less we seem to be feeling the knock-on effects more and more. The LCV market challenges around stock continue, with no end in sight for the issues caused by the shortage of semiconductors and other key raw materials.

The motor market continues to feel the effect of uncertain and limited supply – the car market experienced its weakest September since 1998, whilst the LCV market met its lowest September figures since the recession of 2009. The sector was down nearly 42% when compared to the pre-pandemic average.

It should be noted that these figures are on the back of a record August for the sector in what is usually the quietest month of the year. There is no doubt that the difficulties will not be over for some time and some experts predict as late as Q4 2022 as a best case.

Chief Executive of the SMMT commented,

September was a disappointing month for new van registrations, as the much-documented semiconductor shortage has started to impact supply. Manufacturers are doing all they can to fulfil orders and, after a strong year so far, demand still remains high. With businesses continuing to renew their fleets, there is a greater choice than ever of new zero emission models coming to market, helping ensure the commercial vehicle sector plays its part in decarbonising road transport.

[Source: Mike Hawes, Chief Executive SMMT, ssmt.co.uk]

Aligned to the stock shortage is the requirement to reduce emissions within the sector. We are seeing the momentum for Electric Vans building, proven by the dominance of non-ICE vehicles at this year’s Commercial Vehicle Show. The current penetration of electric vehicles is 1 in 38 vans registered in 2021 being fully electric (1 in 12 cars). This will increase as the supply chain improves. The proposed Clean Air Zones planned for some of the UK’s major cities will accelerate the move towards electric, but challenges still remain around the infrastructure to support the movement to this cleaner energy source.

Scott Barnett LCV MarketScott Barnett, Sales Manager – Commercial Vehicles

Manager of a nationwide sales team providing bespoke vendor finance solutions to the commercial vehicle sector, Scott has over 17 years’ experience in the finance industry.

If you’re interested in finding out more about how we can support you with your Commercial Vehicle finance, please get in touch with Scott on +44 (0)7557 845 344 or email scott.barnett@uk.bnpparibas.com

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