November car registrations rise sharply
The UK new car market grew 23.5 per cent in November to 142,889 registered units in the fourth consecutive month of year-on-year growth, according to new figures from the Society of Motor Manufacturers and Traders (SMMT). The growth delivered the best total for November since 2019, with manufacturers continuing efforts to fulfil orders amid erratic global components supply. However, registrations in the month were still -8.8 per cent below 2019 levels and, while further recovery is anticipated in 2023, global and domestic economic challenges mean that the market will remain below pre-pandemic levels
Registrations by large fleets energised the market, up 45.4 per cent compared with November last year. Demand from private buyers also grew, albeit by a more modest 2.7 per cent. Business registrations more than doubled, meanwhile, up 112.2 per cent, but remain a small fraction of the overall market.
Zero emission vehicle uptake continues to grow, with newly registered battery electric vehicles (BEVs) up 35.2 per cent to represent more than one in five new cars (20.6 per cent) – the largest monthly share of BEVs this year. Conversely, plug-in hybrid (PHEVs) registrations fell by -5.7 per cent, making up 7.1 per cent of the market. As a result, some 39,558 new plug-ins were registered, representing more than one in four (27.7 per cent) new cars joining UK roads in November. Hybrid electric vehicles (HEVs), meanwhile, rose by 66.9 per cent to 11.2 per cent of the market, driven particularly by fleet operators looking for flexibility and emissions reductions.
The most in-demand supermini and lower medium vehicle segments both grew by 21.5 per cent and 20.5 per cent respectively in November, while dual purpose vehicles increased by 21.8 per cent. There was significant growth in luxury saloon and multi-purpose vehicles, up 87.3 per cent and 288.6 per cent, but these segments still remain a small section of the market.
As growth returns to the new car market, the car sector is poised to deliver an additional £8 billion for the UK economy in 2023, with an anticipated 15.4 per cent market growth. UK Automotive is making rapid strides to deliver on its net zero targets, and further acceleration requires forward-thinking planning and collaboration from all stakeholders. Measures that boost motorists’ confidence in EVs, including a fiscal framework that encourages EV adoption and targets to speed up the provision of charging infrastructure, will help to ensure uptake is in line with the UK’s green goals, particularly as the ambitious Zero Emission Vehicle Mandate comes into effect.
Mike Hawes, SMMT Chief Executive, said: “Recovery for Britain’s new car market is back within our grasp, energised by electrified vehicles and the sector’s resilience in the face of supply and economic challenges. As the sector looks to ensure that growth is sustainable for the long term, urgent measures are required – not least a fair approach to driving EV adoption that recognises these vehicles remain more expensive, and measures to compel investment in a charging network that is built ahead of need. By doing so we can encourage consumer appetite across the country and accelerate the UK’s journey to net zero.”
NFDA welcomes “robust” consumer demand
Commenting on the SMMT figures, Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA), which represents franchised car and commercial vehicle retailers in the UK, said: “The increase in new vehicle sales in November builds on increasing sales in recent months. Franchised dealers continue to deliver a high quality service to their customers in the face of tight vehicle supply.“
With sales of electric growing, diesel fell from 5,939 units to 5,605 (-5.6 per cent), whilst petrol has risen from 50,073 units to 57,590 units (15 per cent).
Robinson added: “New car sales rising again demonstrates that consumer demand remains robust and our members are focused on helping customers find the right vehicle for them against long lead times and supply constraints. Through our Electric Vehicle Approved (EVA) scheme, we are also helping dealers to advise customers on the transition to EV, a trend that will continue through the remainder of the decade.”
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