Online shopping boosts van market

2nd March 2015

Home delivery services are investing in fleets of trucks, vans and other commercial vehicles to keep pace with the growing popularity of online shopping.

Commenting in Business Vans magazine, top automotive economist Professor Garel Rhys of the University of Wales Cardiff Business School said:  “We all know that High Street shops have been suffering, but what is often not appreciated is that we are still buying things and these have to be delivered by vans.  The tremendous growth of online shopping and the parcels industry has driven this boom in van use and sales, and I don’t see it slowing down.”

The Society of Motor Manufacturers & Traders’ Commercial Vehicle Development Manager Nigel Base took a similar line in Transport News Brief last month.  “Even before the festive shopping season kicked in, retailers have been savvy to invest in commercial vehicles to prevent delivery headaches,” he said.

“As a result, the market is proving more robust than ever and, with the continued popularity of events such as Cyber Monday, investing in commercial vehicles will become an increasing priority for the majority of online retailers.”

In the SMMT’s report on 2014 new commercial vehicle sales, the medium van sector enjoyed the biggest increase over 2013.  Vehicles in the 2.0 to 2.5T class were up by 42%, while the 3.5T class was up by 20%.

Figures from the Finance and Leasing Association, meanwhile, show that the value of asset finance used by businesses to invest in commercial vehicles has risen from £4.9 billion to £5.9 billion in the past 12 months.