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Nobody dared predict the fortunes of any market as we entered 2002, with economies still reeling from the impact of 9/11, and uncertainties surrounding any likely repercussions. A 'normal' year was what most were hoping for, and the UK van market was no different.

Nigel Emms, communications director at Iveco, says: "We said 12 months ago that it was important not to over-estimate the impact of 9/11, but that we shouldn't under-estimate it either. And that has proven to be the case. Because, while 2002 may have been as 'normal' a year as one might have hoped for, it was also a year when events on the world stage created uncertainty on the national stage. I'm referring, of course, to the ever-increasing threat of war in Iraq."

So, with that as the prelude, it was over to Chris Thorneycroft-Smith, director of Iveco's Commercial Vehicle Business Unit, to bring us up to date with the state of the UK van market at the end of 2002, and Iveco's position within the various identified sectors. And the news was better than we might have hoped for ...

"2002 was another strong year for the van market," explains Thorneycroft-Smith. "We managed to maintain our volume sat just under the 7500 mark, albeit with a marginally reduced penetration of 6.9%."

According to Iveco, within the vans sector (2.8-6.5t), 108,850 units were sold during 2002, representing a 4.8% growth year on year. Iveco's unit volume remained virtually unchanged which, for a year where the company's stated aim was 'to achieve a year of consolidation', was a welcome result.

Nissan, Citroen, Vauxhall and VW experienced the greatest year-on-year growth but only Ford sold more units than Iveco, which held steady at number five on the hit list.

"Iveco is still a relatively new player in the overall van sector," explains Thorneycroft-Smith. "We only actually entered the lighter 2.8-3.4t sector three years ago for example. With a large number of long-established players, the van market has never been an easy one to break into. So we're delighted to have achieved what we have, and in a comparatively short space of time."

He continues: "What's more, Iveco is essentially a truck manufacturer. Unlike most of our competitors, we don't have the benefit of a car brand to trade off. That presents us with an even greater challenge, especially in the retail sector."

The market in general

Iveco only operates in the 2.8-6.5t sector, and consequently the figures discussed are limited to that range of vehicles. However, that covers over 70% of what most would describe as the panel van sector, and is therefore a good indicator of overall trends. Perhaps the greatest surprise was the growth, mentioned earlier, of almost 5%.

"Given the strength of the van market in recent years," says Chris, "many were surprised at this. Growth can't continue forever, after all. At the beginning of 2002, many experts were saying we should expect a levelling off of demand at best, and I was one of them."

This clearly wasn't the case, with the market achieving well over 100,000 units yet again. "And don't forget," continues Thorneycroft-Smith, "that, just under this, there was just short of a further 45,000 vans registered between 2.61 and 2.79t."

Sector by sector

Iveco divides its market into three categories--commercial vans (2.8-3.49t), light vans (3.5t) and medium vans (3.51-6.5t).

Iveco had predicted a gradual market decline within the commercial vans sector as operators continue to move towards 3.5 tonners. With legislation tilted the way it is, this makes sense, although 2002 saw another increase in this sector (6.7%) to 38,739 units. Problems with definition, particularly concerning pick-ups--which fall into this sector--inflated it by 20%, and this needs to be borne in mind when interpreting apparent growth.

Iveco had a good year at the weight. "Bearing in mind that this was only our third year in the sector, we increased our volume by 11.5%, almost double the market average," explained Chris Thorneycroft-Smith. "We nearly exceeded the 1000 registrations mark for the first time ever."

The 3.5 tonne, or Light Van, sector is where much of the growth has been in recent years. A 3.6% increase year on year for the sector last year represented 2253 units which, still represents significant growth.

That leaves the top end of the van sector. "Larger vans are on their way back," explained Thorneycroft-Smith. "The sector grew in 2000, and grew again in 2001. In 2002 it's grown even more, and most of that was down to the success of our Daily 65C at exactly 6.5t. We registered a total of 848 65Cs--or 17.6% of the sector--making it the best selling model in its class."

Politically, there are still too many uncertainties to forecast any growth in the van sector for the year ahead, but Iveco, like its competitors, has aggressive plans to drive growth in the coming 12 months. This will be reflected in the vehicles themselves, finance packages, service back-up, and a number of innovations to ensure that the van customer keeps coming back.