Electrification growth boosts new car sales in August

The new car market grew 24.4 per cent in August with 85,657 new vehicles registered, according to the latest SMMT figures. While August is typically a quieter month with many buyers choosing to wait until the September number plate change, an increase of 16,799 units means the sector is now entering a second year of growth. Despite this improved performance, the market still remains -7.5 per cent below pre-pandemic levels.

The increase was fuelled by a surge in registrations by large fleets, rising 58.4 per cent to 51,951 units, while business registrations grew 39.4 per cent to 1,635 units. Conversely, private demand softened by -8.1 per cent, compared with a supply-constrained 2022 market.

Demand for electrified vehicles continued to grow, accounting for almost four in 10 (37.8 per cent) new cars reaching the road. Battery electric vehicle uptake swelled by 72.3 per cent to secure a 20.1 per cent market share, an August record and the highest recorded since last December. Plug-in hybrid uptake also rose significantly, by 70.0 per cent, to account for 7.7 per cent of new registrations. Hybrid volumes remained relatively stable with a 6.8 per cent increase, comprising 10.0 per cent of the market.

However, with less than four months to go until the expected introduction of a Zero Emission Vehicle Mandate, industry still has no sight of the proposed regulation. The automotive sector is committed to Net Zero but the diminishing time threatens the ability of the market to move. Demand from both business and private consumers must be boosted still further if ambitions are to be met, but while businesses benefit from fiscal incentives to switch, there is no similar package for the private consumer market.

SMMT Chief Executive Mike Hawes called for action from the Government, saying: “With the automotive industry beginning a second year of growth, recovery is underway with EVs energising the market. But with a new Zero Emission Vehicle Mandate due to come into force in less than 120 days, manufacturers still await the details. Businesses cannot plan on the basis of consultations, they need certainty. And now, more than ever, government must match action to ambition, ensuring there are the incentives and infrastructure in place to convince drivers to make the switch.”

NFDA “optimistic” about future

NFDA Chef Executive Sue Robinson said: “Whilst August is traditionally a quiet for motor retail in the run up to September’s plate change, dealers are reporting a positive month for trading. New car sales continue to steadily increase year-on-year, driven by the electrification of the UK car parc.”

With sales of electric growing, diesel fell from 4,455 units to 3,647 (-18.1 per cent), but petrol has risen from 31,652 units to 34,756 units (9.8 per cent).

Robinson added: “The top of the news agenda for the past month has been ULEZ; NFDA’s members have begun to see the impact of the legislation with increasing enquiries and growing interest about switching to electric from a non-ULEZ compliant car. Feedback from members is that footfall is steady, particularly in these zones, with prospective EV consumers keen to speak to their local retailers, who act as vital information hubs for their communities.

“Looking ahead, September is an important month in the industry and NFDA retailers are well prepared to meet the demands of UK consumers with good stock availability, high levels of training, through NFDA’s Electric Vehicle Approved accreditation, and a focus on delivering the best service possible to UK consumers.”