The new car market grew 25.8% in June with 177,266 vehicles registered, according to the latest figures from the Society of Motor Manufacturers and Traders as it warned of problems ahead in 2024.
The June performance marks the 11th consecutive month of growth as the industry gradually overcomes the pandemic-induced supply chain shortages that constrained production for much of the previous two years.
Growth in the month was driven predominantly by large fleet registrations with incentives, up 37.9% to 92,699 units, reflecting the normalisation of supply. Private demand grew more modestly, up 14.8% to 79,798 units.
Deliveries of petrol cars increased 22.7%, to remain the most popular powertrain, while those of hybrids (HEVs) and plug-in hybrids (PHEVs) also rose, by 40.1% and 65.5% respectively. Diesel registrations were down -13.5%. Battery electric vehicle (BEV) registrations, meanwhile, grew again, with the segment up 39.4% to 31,700.
Almost a million (949,720) new cars joined UK roads in the first six months of 2023, with total registrations up 18.4% and BEV uptake at record levels with 152,968 deliveries so far this year – some 13 times greater than the same period in 2019.
BEV market share for 2023 is now 16.1% but, with a zero emission vehicle mandate requiring 22% BEV registrations per manufacturer due to come into force in less than six months’ time, more needs to be done to accelerate the transition.
The industry body has called on the Government to cut the 20% VAT on public charging points to bring them in line with home charging at 5% to encourage more sales.
In Wales last month, dealers recorded 6,116 registrations, a 24.21% increase over the same month last year.
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