Error parsing XSLT file: \xslt\FacebookOpenGraph.xslt New car market stabilises following months of decline
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

New car market stabilises following months of decline

Date: 05 September 2022   |   Author: Sean Keywood

UK new car registrations were up by 1.2% year-on-year in August, according to data from the Society of Motor Manufacturers and Traders (SMMT).

This growth is the first seen from the market since February, with often heavy falls in the interim months caused by supply problems.

However, last month was still the second-weakest August seen since 2013, with the month also traditionally a quiet one ahead of the September number plate change.

Fleet registrations were also down again during August, albeit by only 1.6%, while private registrations were up by 3.2%.

Business registrations, classed as to fleets with fewer than 25 vehicles, were up by 26.6%, but still only accounted for 1.7% of the market.

In terms of fuel mix, pure EV registrations were up by 35.4% year-on-year to take a 14.5% share of the overall market, while plug-in hybrid registrations were down by 23.1% for a 5.6% market share, and conventional hybrids were down by 0.7%, accounting for 11.6% of the market.

Mild hybrid petrol registrations were down by 14.1% for a 12.1% market share, and mild hybrid diesels were down by 23.7%, taking just 3.7% of sales.

Petrol car registrations were up by 7.5%, for a 46% market share, while diesels were down by 12.3% to take 6.5% of the market.

For the year to date, overall new car market registrations are down by 10.7% compared with 2021, and by 35.3% compared with pre-pandemic 2019.

SMMT chief executive Mike Hawes said: "August's new car market growth is welcome, but marginal during a low volume month. Spiralling energy costs and inflation on top of sustained supply chain challenges are piling even more pressure on the automotive industry's post-pandemic recovery, and we urgently need the new Prime Minister to tackle these challenges and restore confidence and sustainable growth. 

"With September traditionally a bumper time for new car uptake, the next month will be the true barometer of industry recovery as it accelerates the transition to zero emission mobility despite the myriad challenges."

Reacting to the figures, Novuna Vehicle Solutions managing director Jon Lawes said: "These figures illustrate the continued supply-side restraints on the market, which is translating into modest sales growth. However, demand for electric vehicles remains relatively robust, despite enduring protracted lead times which we expect to see continue well into 2023.

"Despite the new Conservative leader's daunting in-tray, it is crucial we see firm, swift action to support the automotive sector across the board including further significant public charging infrastructure investment and incentives for drivers to ramp up the transition to zero emission mobility by 2030. 

"We would urge the incoming leadership to maintain favourable tax incentives that have been successful in boosting EV uptake to date, such as salary sacrifice, whilst devoting significant resource to improving the charging infrastructure, which remains a barrier for millions of motorists looking to transition to an EV with confidence."

Lex Autolease electrification propositions lead Meryem Brassington said: "Whilst August is traditionally a quieter month for registrations, it's encouraging to see electric vehicles continuing to make significant inroads in the new car market - despite the ongoing supply chain issues.

"The ascendency of EV registrations has been a bright light in a relatively gloomy picture for new car registrations this year. Yet, significant challenges lie ahead as we head into the autumn. EV drivers face a substantial uplift in charging costs due to the energy price cap increase and further clarity is needed on company car tax tables beyond 2025 to give fleet managers the insights they need to make long-term purchasing decisions.

"As the new Prime Minister prepares to make their way through an already busy in-tray, it's vital that policymakers continue to support the transition to an electric future and give drivers and businesses the confidence to make the switch to a zero-emission vehicle. The government's new £20million chargepoint scheme is another step in the right direction and all eyes will be on further support and funding to be announced before the year is out."  

 



Share


Subscribe