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New Van Market Growth: A Sign of a Flourishing Courier Industry by Laura Jeeves





New Van Market Growth: A Sign of a Flourishing Courier Industry by
Article Posted: 02/28/2019
Article Views: 266
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New Van Market Growth: A Sign of a Flourishing Courier Industry


 
Automotive
This January, the market for new light commercial vehicles (LCVs) has increased by 8.6%. Compared to January 2018, this is quite significant, with 22,000 new vans and pick-ups being registered (an uplift of 1,761).

Since last year, all sectors have seen growth, besides the medium vans which had a 3.9% decrease in demand. These figures have come from the Society of Motor Manufacturers and Traders (SMMT), and it is interesting to see some significant variations for particular vehicles.

Demand Fluctuations

Both pickups and light car-derived vans saw large demand increases (13.4% and 31.7%) due to new and improved models being introduced to the industry. The statistics also showed an increase in the demand for large vans (weighing 2.5-3.5 tonnes) as 13,268 vehicles were registered.

The chief executive of the Society of Motor Manufacturers and Traders, Mike Hawes, said that he was unsurprised by the increasing demands due to the poor figures in December 2018. While a slight bounce back was expected, further fluctuations have been predicted for coming months. Hawes stated that since “the UK’s post-Brexit future remains uncertain”, it will be difficult to know what’s to come in terms of vehicle demand.

Stability in Your Courier Network

All fleet managers strive for stability in their courier network, but with demand fluctuations as significant as this in addition to the Brexit problem, it can be very difficult to achieve a stable system. In order to be able to invest and renew their fleets, operators need a steadier market. Hawes argued that this “now depends on government providing the right conditions starting with removing the threat of ‘no-deal’.”

The Current Market Leaders

Companies with the highest market shares included Ford, with a 31.7% share and Volkswagen at 11.7%. The PSA group (Vauxhall, Citroen and Peugeot) had an impressive January sales total of 5,647, which by volume would put them high in the rankings.

Thoughts for the Future of LCVs

The director of the National Franchised Dealers Association (NFDA), Sue Robinson, is confident that the light commercial vehicle market will continue to thrive throughout 2019.

The NFDA represent commercial vehicle and franchised car retailers, and Robinson confirmed that “many new models [are] due to enter the market this year” to attract more and more buyers. She stated that the new models “coupled with attractive finance offers and better specification vehicles” have made the industry optimistic about the future of LCVs.

While fleet managers are waiting on the Brexit decision and looking to improve the stability of their courier network, new LCV models are beginning to dominate the market. Though statistics are currently unsettled, there is hope that this is a real sign of a flourishing courier industry.

Author Plate Norman Dulwich is a Correspondent for Courier Exchange, the world's largest neutral trading hub for same day jobs in the express freight exchange industry. Connecting logistics professionals across the UK and Europe through their online courier network, Courier Exchange provides services for matching loads and with available drivers. Over 5,400 member companies are networked together through the Exchange to fill empty capacity, get new clients and form long-lasting business relationships.

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