The UK new automobile market clocked up its twentieth consecutive month of progress in March, with a ten.4% rise in registrations. In what is often the busiest month of the yr because of the new numberplate, 317,786 new vehicles reached the street with a 24 plate – one of the best March efficiency since 2019, though nonetheless -30.6% beneath pre-pandemic ranges.
Development was once more pushed by fleet funding, up 29.6% because the sector continues to get better following the constrained provide of earlier years. Registrations by personal patrons fell by -7.7%, with a difficult financial backdrop of low progress, weak shopper confidence and excessive rates of interest. The small enterprise registration phase, in the meantime, declined -8.0%.
Petrol vehicles retained the lion’s share of the market, at 55.7%, with registrations up 9.2% yr on yr, as diesel volumes fell -2.7% to account for simply 7.3% of demand. Uptake of hybrid electrical autos (HEVs) reached file ranges, rising by 19.6% to 44,550 models and 14.0% of the market, whereas the largest share progress was recorded by plug-in hybrids, up by greater than a 3rd to 24,517 models, or 7.7% of all new registrations.
Conversely, whereas battery electrical car (BEV) registration volumes had been at their highest ever recorded ranges, market share fell by one share level from the identical month final yr, down to fifteen.2%. Registrations rose 3.8%, with solely fleets exhibiting any quantity progress.
The autumn in BEV market share inside a rising market underscores the necessity for presidency to assist customers to hurry up fleet renewal. Massive fleets proceed to drive BEV uptake, thanks to driving tax incentives however whereas registration volumes elevated in March, market share declined. A tricky financial backdrop makes it ever more difficult for customers to spend money on these new applied sciences.
Producers themselves are providing beneficiant incentives, serving to extra drivers swap to zero emission autos and ship authorities and business carbon targets, however this can not be sustained indefinitely.
A full market transition wants incentives not only for fleet and enterprise patrons however personal retail patrons as effectively, one thing that may convey the UK into line with different main markets. Quickly halving VAT on BEVs, revising the brink for the costly automobile complement on Car Excise Responsibility subsequent April, and abolishing the ‘pavement penalty’ on public EV charging by equalising VAT charges to five% according to dwelling charging, would make a big distinction to customers, serving to extra of them transfer to zero emission autos sooner.
Mike Hawes, SMMT Chief Govt, stated, “Market progress continues, fuelled by fleets investing after two robust years of constrained provide. A sluggish personal market and shrinking EV market share, nonetheless, present the problem forward. Producers are offering compelling presents, however they will’t single-handedly fund the transition indefinitely. Authorities assist for personal customers – not simply enterprise and fleets – would ship a optimistic message and ship a sooner, fairer transition on time and on the right track.”
Apr 4, 2024