August signalled the end of two years of growth in the new car market, a disappointing development despite traditionally being a quiet month, according to Sue Robinson, Chief Executive of the National Franchised Dealers Association, commenting on the latest SMMT new car registration figures.
In August, a total of 84,575 new cars were registered, a decrease of -1.3% from the same period last year. Sales to private buyers were up slightly by 0.2%; fleet registrations were down by -1.2%.
Battery electric vehicles (BEVs) experienced an increase, up 10.8% to 19,113 units. Plug-in hybrid (PHEVs) registrations decreased by -12.3% to 5,786 units, and hybrids (HEVs) saw growth of 36.1% to 11,639 units. In 2024, 213,544 new BEVs have been registered so far, compared to 193,221 units at the same point last year, representing a 10.5% increase.
With sales of electric growing, diesel fell from 5,574 units to 5,165 units (-7.3%), and notably petrol also fell from 47,688 units to 42,872 units (-10.1%).
Sue Robinson concluded, “Notably, private demand has seen positive growth for the first time this year albeit modest, after fleet sales have driven demand for much of the year.
“August has also proven to be a strong month for new electric vehicle sales. As we approach the end of the year, the ZEV mandate and its targets will be closely examined, especially as the government looks to reinstate the 2030 phase-out date for new internal combustion engine cars.”
She added, “Consumers, continue to face numerous challenges, with cost remaining the most significant barrier to electric vehicle adoption. According to NFDA’s 2024 Consumer Attitude Survey, 55% of respondents believe EVs are still too expensive. It is crucial that the Labour government addresses these concerns, emphasising the need for price incentives for private consumers to complement this supply-side shift.
“The final quarter of the year, coupled with the added boost of September as a plate change month, will be interesting to observe. There are several issues that need to be dealt with as we near the end of the first year under the ZEV mandate.
“The NFDA will be submitting its Budget proposal in the coming days, offering the automotive retail sector’s perspective ahead of the Autumn Statement in October”
