Error parsing XSLT file: \xslt\FacebookOpenGraph.xslt Fleet car demand continues to surge
Cookies on Businesscar

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive all cookies on the Business Car website. However, if you would like to, you can change your cookies at any time

BusinessCar magazine website email Awards mobile

The start point for the best source of fleet information

Fleet car demand continues to surge

Date: 05 October 2023   |   Author: Sean Keywood

UK new car registrations rose by 21% year-on-year in September, with the fleet sector remaining the driving force behind market growth.

According to the Society of Motor Manufacturers and Traders (SMMT), there was a 40.8% rise in fleet registrations, which took 52.5% of the market, well ahead of the 5.8% rise seen in private registrations.

Business registrations, classed as to fleets with fewer than 25 vehicles, were down by 12%, accounting for 2.4% of the market.

The SMMT attributed the strong fleets sales growth - a pattern seen for several months now - to the market rebalancing after supply to the sector was constrained last year, although by last September fleet registrations had already begun to recover.

The overall market grew for the 14th consecutive month in September, and the month was the second-busiest of the year after March, with both being crucial number plate change months.

It was also the best September for the market since 2020 - although demand remains 20.6% below pre-pandemic levels.

In terms of fuel mix, EV registrations were up by 18.9% year-on-year in September, accounting for 16.6% of the market. This included a 50.6% rise in fleet purchases, while private demand for EVs was down by 14.3%.

Plug-in hybrids shot up by 50.9% to take 6.8% of the overall market, while conventional hybrids were up by 30.7% for a 13.9% market share.

Mild hybrid petrols were up by 31.8%, accounting for 17% of the market, while mild hybrid diesels were up by 4.8% for a 3.3% market share.

Pure petrol car registrations were up by 15% for a 38.7% market share, while diesels were down by 4.2% to take 3.6% of the market.

SMMT chief executive Mike Hawes said: "A bumper September means the new car market remains strong despite economic challenges. However, with tougher EV targets for manufacturers coming into force next year, we need to accelerate the transition, encouraging all motorists to make the switch. 

"This means adding carrots to the stick - creating private purchase incentives aligned with business benefits, equalising on-street charging VAT with off-street domestic rates and mandating chargepoint rollout in line with how electric vehicle sales are now to be dictated. 

"The forthcoming Autumn Statement is the perfect opportunity to create the conditions that will deliver the zero emission mobility essential to our shared net zero ambition."

Reacting to the figures, Lex Autolease managing director Nick Williams said: "Moving forward on phasing out the sale of new petrol and diesel cars and vans between 2024 and 2030 will provide consumers and businesses with the certainty needed to switch to EVs. That confidence coupled with the new registration plate release is reflected in strong September figures from the SMMT.

"I'm hopeful that the delay on the final phase out date won't impact these figures in the coming years, as renewed commitments from manufacturers and businesses looking to hit their own carbon targets will help to drive continued growth.

"The revised deadline and the commitment to the ZEV mandate provides both clear, long-term policy support and the appropriate sense of urgency and should ensure industry, businesses and consumers can continue to plan effectively for an electric future."



Share


Subscribe