The UK new automobile market rose by 2.5% in July, delivering two years of consecutive progress, based on the most recent figures from the Society of Motor Producers and Merchants (SMMT).
With 147,517 new vehicles reaching the street, it was the most effective efficiency for July since 2020, when a re-opening of dealerships following 4 months of lockdown noticed a surge in deliveries to fulfil demand pent-up demand.
As has been the sample for the yr, July’s progress was sustained fully by the fleet sector, which recorded a 13.0% improve in registrations to attain a 62.0% market share. Non-public demand continued to decrease, falling by -11.1% to account for 36.2% of deliveries within the month, though the rising reputation of wage sacrifice buying will contribute to this decline.
Electrified automobile demand outpaced the general market, accounting for 4 in 10 (42.0%) new vehicles registered within the month. Hybrid electrical automobile (HEV) uptake elevated by 31.4% to attain a 14.5% market share, whereas plug-in hybrids (PHEV) grew 12.4% to take 8.9% of registrations.
Battery electrical automobile (BEV) volumes, in the meantime, have been up 18.8%, leading to an total market share of 18.5%. Whereas the personal share of the BEV market continues to fall – 17.2% went personal consumers, in contrast with 20.3% final yr – personal BEV volumes did improve by a marginal 0.9%. General, BEVs account for 16.8% of the brand new automobile market, yr so far.
With zero emission automobiles mandated to comprise a minimal 22% of every model’s new automobile registrations over the total yr, the tempo of transition wants to extend considerably. The newest business outlook, nonetheless, means that such a surge is trying more and more unlikely given the present market situations.
Whereas the outlook anticipates total market progress in 2024, expectations have been revised downwards since April, with 1.968 million new automobile registrations now forecast by the tip of the yr. The anticipated BEV share of the market has additionally been revised downwards to 18.5% from the 19.8% anticipated in April. Final week’s rate of interest reduce was already ‘priced in’ to the most recent outlook however additional cuts can be welcome, serving to scale back the prices of finance and making new automobile purchases extra accessible to extra customers.
Mike Hawes, SMMT Chief Government, mentioned, “Two years of recent automobile market progress in opposition to a backdrop of a turbulent financial system is testomony to the sector’s resilience and the attractiveness of the offers on supply. Weakening personal retail demand, nonetheless, significantly for EVs and regardless of beneficiant producer reductions, is the over-riding concern. Extra folks than ever are shopping for and driving EVs however we nonetheless want the tempo of change to quicken, else the UK’s local weather change ambitions are threatened and producers’ means to hit regulated EV targets are in danger. Attaining market transition on the tempo demanded requires larger help for customers and, with the all-important new numberplate month of September beckoning, motion on incentives and infrastructure is required now.”
Aug 6, 2024