Tenth month of growth for UK new car market

The UK new car market has posted its longest uninterrupted period of expansion for eight years, as registrations grew 16.7 per cent in May to reach 145,204 units, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT). The performance marks 10 consecutive months of growth, although registrations remain -21.0 per cent below pre-pandemic 2019 levels.

Large fleet registrations continued to drive the growth, up by 36.9 per cent to 76,207 units, reflecting a regularisation of supply following challenging supply issues in 2022. Registrations to private buyers fell slightly by -0.5 per cent to 65,932 cars, while smaller business fleets registered 3,065 units, a year on year rise of 22.5 per cent.

Petrol-powered cars remain Britain’s best sellers, accounting for 57.1 per cent of all registrations. Alternatively powered vehicles, however, continue to make up an ever-larger share of the market, with plug-in hybrids (PHEVs) rising 23.0 per cent to reach a 6.2 per cent market share and hybrids (HEVs) growing 22.2 per cent to comprise 12.3 per cent of all registrations. Reflecting the dramatic transformation of the market over the last three years, May saw battery electric vehicles consolidate their position as the UK’s second most popular power train. A further 24,513 joined the road during the month, up 58.7 per cent on May last year to secure a 16.9 per cent market share.

Of the new cars registered in May, lower mediums, superminis and dual purpose were the most popular, comprising 86.3 per cent of the market. There are now zero emission options available in every single segment of the market, with more than 80 models – around a quarter of all new car models available – from which to choose. Furthermore, these new BEVs have an average battery range of 236 miles, well in excess of UK drivers’ average weekly mileage of around 100 miles.

While billions of industry investment is delivering choice and growth, however, the speed of the shift needs to accelerate. From January we expect to see the Zero Emission Vehicle Mandate in force, which will set a minimum quota for new battery electric vehicle registrations for every brand. While the models and volumes will be available, ensuring the market demand is there will require action from every stakeholder. A supportive fiscal framework, simplified planning processes, faster grid connections and the provision of a nationwide network of reliable, affordable and sustainable charge points will give drivers considering the switch the confidence to purchase. Investments are coming but regulated public charger targets commensurate with those for new vehicle registrations would give drivers greater confidence and help accelerate the UK’s zero emission transition.

Mike Hawes, SMMT chief executive, said: “After the difficult, Covid-constrained supply issues of the last few years, it’s good to see the new car market maintain its upward trend and the fact that growth is, increasingly, green growth is hugely encouraging. Transforming the market nationwide, however, and at an even greater pace means we must increase demand and help any reticent driver overcome any concerns about electric vehicles. This will require every stakeholder – industry, government, chargepoint operators and energy companies – to play their part, accelerating investment to drive decarbonisation.”

NFDA comment

Sue Robinson, chief executive of the National Franchised Dealers Association (NFDA), which represents franchised car and commercial vehicle retailers in the UK, welcomed the news, adding: “This is a trend we expect to continue through the summer months.”

Robinson went on: “Charging infrastructure across the UK remains the main issue on the showroom floor when Electric Vehicle Approved (“EVA”) dealers are advising customers on their next choice of vehicle. NFDA is working closely with government and other automotive bodies to ensure that UK consumer’s concerns about EVs are being addressed and we are confident that our members will help the UK to achieve the transition.”