Press release

17 May 2023 London, GB

HGV registrations see highest quarterly volumes since pre-pandemic as electric and hydrogen market continues to stall – EY comments

HGV registrations have been rising steadily and consistently since Q2 2022 after a low of fewer than 8,000 vehicles in Q3 2021. The HGV market has built on the resilience displayed by the automotive sector in the wake of the pandemic, despite a range of complex economic headwinds and supply chain constraints.

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Mark Main, UK Transport Lead at EY, said

“With 11,517 registrations in Q1 2023, UK Heavy Goods Vehicle (HGV) registrations rose to their highest volumes since the pandemic – a significant year-on-year increase of 17.1%, with only 9,837 new HGV registrations recorded in Q1 2022. This reflects the magnitude of HGV growth in recent times, although there was only a small quarter-on-quarter increase of 205 vehicles – equivalent to a 1.8% rise.

“HGV registrations have been rising steadily and consistently since Q2 2022 after a low of fewer than 8,000 vehicles in Q3 2021. The HGV market has built on the resilience displayed by the automotive sector in the wake of the pandemic, despite a range of complex economic headwinds and supply chain constraints.

“Pre-pandemic annual registrations were 48,535 in 2019, falling to just under 33,000 in 2020. This compared to a low point of just over 19,000 vehicles in 2009. Annual volumes since the pandemic have increased consistently, rising to 37,163 in 2021 and 40,716 in 2022 – a growth trend currently on track to be emulated in 2023.”

Top brands extend market dominance

Mark Main adds: “The Top five brands in the UK are a mix of European players, and they extended their market dominance in the first three months of 2023, with a total of 9,548 registrations between them – representing more than 82.9% market share in Q1, up from 80.9% in Q4 2022.

“The top two brands accounted for 46.1% of sales in Q4 2022, which rose to 49.3% in Q1 2023.”

Electric and hydrogen uptake remains key challenge for UK

Mark Main continues: “Despite the many positives for HGV manufacturers to celebrate, an area still facing challenges is the uptake of alternative fuel, electric and hydrogen HGVs, as the commercial vehicles sector strives towards sustainability goals. This remains an emerging technology, still in its infancy.

“The Society of Motor Manufacturers and Traders (SMMT) have reported that electric and hydrogen HGVs represented just 0.3% of the market in Q1 2023 – in stark contrast to the wider picture for battery electric Light Commercial Vehicles, which saw a 62.6% increase in uptake in April.

“The SMMT has cited the lack of even a single HGV-dedicated public charging or hydrogen refuelling station as a key reason behind the lack of growth in this area. As is the case for EV uptake more generally, infrastructure will need to be rolled out in abundance and at pace to accelerate growth for electric HGVs.

“Places like California and Germany have put in place significant, attractive measures to incentivise the adoption of commercial electric vehicles – something the UK could look to emulate in a bid to encourage and accelerate the uptake of electric HGVs.”