October saw another month of contraction in the new car market, a concerning trend following August’s end to two years of continuous growth.
This decline is particularly worrying, as it highlights the volatility of the market right now, said Sue Robinson, Chief Executive of the National Franchised Dealers Association.
UK new car buyers now have more than 125 different BEV models to choose from – an uplift of 38% over the last 10 months. While it remains the case that the average BEV has a higher upfront cost than an ICE equivalent, widening choice and huge manufacturer discounting mean that around one in five BEV models now has a lower purchase price than the average petrol or diesel car, especially for buyers able to take advantage of schemes such as salary sacrifice.
In Wales, sales slipped 3.75% to end the month at 5,165 registrations, while the Kia Sportage was the best selling model in Wales and the UK as a whole.
In October, a total of 144,288 new cars were registered, an decrease of -6.0% from the same period last year. Sales to private buyers were down by -11.8%; fleet registrations were also down by -1.7%.
With sales of electric growing, diesel fell from 11,276 units to 8,961 units (-20.5%), and notably petrol also saw a drop from 84,702 units to 72,681 units (-14.2%).
Sue Robinson concluded, “Following September’s record BEV performance, October has sustained this momentum with a market share of 20.7% for the month, amounting for 1 in 5 sales and the only powertrain to see growth.
“Both private demand and fleet saw declines this month. Although the Chancellor acknowledged the significance of electric vehicles in the Autumn Budget, such as maintaining current incentives for EVs in company car tax, investment in charging infrastructure is also vital to drive demand further.”
