When Ivy was on the way out in 1930 due to the depression, Raleigh acquired the rights to their Karryall three-wheeled van for which Raleigh had supplied many components including the 350cc engine, the forks and the petrol tank tank
Raleigh entered the vehicle market in 1931 with a 598cc three-wheel utility van (LDV) which employed the front end of a motorcycle and had two wheels at the rear supporting a cargo tray. It enjoyed considerabe tax concessions and quickly became the vehicle of choice for many small businesses as it was far cheaper to run than a conventional delivery van.
Raleigh soon added a passenger version with the motorcycle handlebars replaced by a steering wheel. The market was for passenger three-wheelers was already well-catered to by Morgan and BSA with their sporting two-seater three-wheelers, so Raleigh's approach was to offer a V-twin three-wheeled four-seater for the family which competed with the Austin 7. They called it the Raleigh 7-17.