The last month was the best for new van sales despite a semiconductor shortage that has affected the entire automotive industry over the past 12 months and is expected to affect the industry next year.
In November, 31,320 new vans were produced, an increase of 11.4 per cent from the average before the pandemic, according to the data from the Society of Motor Manufacturers and Traders. The number of van registrations fell in September and October.
The increase in demand for vans is a result of the recovery of the construction sector and growing investment that has filtered through into the automotive industry, according to the SMMT. The organisation attributed growth to changing consumption patterns, with a larger appetite from consumers for online deliveries. Concerns about supply chains has prompted businesses to stock items or secure arrangements on items, which has boosted demand and need for vans.
The SMMT states that the UK is the sixteenth largest automobile manufacturer in the world, and the industry employs 864,300 people in Britain, with 155,000 directly involved in the manufacturing process.
The three most in demand vans last month were the Ford Transit Custom, Ford Transit and Mercedes Benz Sprinter. There are more than 100,000 total registrations across the entire year, with more than 100,000 total registrations since January.
According to the data produced by the SMMT, 4 4 vans and pickup trucks saw the greatest increase in demand compared to November 2020, with a 39.9 per cent and 31.2 per cent increase in registrations respectively.
Mike Hawes, the chief executive, said: A pre-Christmas boost to van registrations will be welcomed by the industry, but it remains a rollercoaster of a market. Supply chain shortages affect the sector's ability to fulfill orders, and demand is robust, but market volatility is likely to be a feature. The November deliveries show how much success they have been having in the UK, and manufacturers are working hard to try and overcome these shortages.
While the outlook remains challenging, customers can be assured of the commitment of the industry to the commercial vehicle sector, given its importance to the operation of society and business growth. The SMMT said it expected market volatility to continue into next year due to the semiconductor shortage. Semiconductors are a key component in the construction of vehicles.
Since January, the van market has grown significantly, with year-on-year registrations rising by 22.8 per cent. These figures are affected by reduced output during 2020 because of the Pandemic. The SMMT said that demand is robust, but whether it will persist in the long term depends on a number of factors including the success of the economic recovery, rising tax levels and inflation, and the emergence of new Covid 19 variants. The SMMT still believes that the van market will reach pre-2019 levels next year.