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UK new car sales rise again

Date: 05 July 2023   |   Author: Sean Keywood

The UK new car market saw year-on-year growth for the 11th consecutive month in June, according to the Society of Motor Manufacturers and Traders (SMMT).

It said 177,266 cars were registered ­- a 25.8% increase compared with June 2022.

As regularly seen in recent months, fleet sales accounted for the bulk of the increase, with these up by 37.9% year-on-year, which the SMMT said reflected the normalisation of supply to the sector compared with 12 months ago. The increase meant fleets accounted for 52.3% of the overall market.

Business registrations - classed as those to fleets with fewer than 25 vehicles - were up by 12.7%, for a 2.7% market share, while private registrations rose by 14.8% for a 45% market share.

In terms of fuel mix, there was major year-on-year growth from the pure EV segment, up by 39.4% for a 17.9% market share.

Even greater growth was seen from plug-in hybrids, up by 65.5% to take 7.2% of the market, and conventional hybrids, up by 40.1% for an 11.8% market share.

Mild hybrid petrols were up by 53.4%, taking 16.1% of the market, while mild hybrid diesels were down by 3.3% for a 3.8% market share.

Pure petrol car sales rose by 13.5% to account for 39.7% of the market, while pure diesels fell by 22.3% for a market share of just 3.5%.

Over the first half of 2023, the overall market has seen 18.4% growth, while EVs are up by 32.7%. This gives the latter a market share of 16.1%, but with the upcoming ZEV mandate requiring a 22% share from 2024, the SMMT says more needs to be done to accelerate the transition.

It has therefore called for a cut in VAT for public charging.

SMMT chief executive Mike Hawes said: "The new car market is growing back and growing green, as the attractions of electric cars become apparent to more drivers. But meeting our climate goals means we have to move even faster. 

"Most electric vehicle owners enjoy the convenience and cost saving of charging at home but those that do not have a driveway or designated parking space must pay four times as much in tax for the same amount of energy.

"This is unfair and risks delaying greater uptake, so cutting VAT on public EV charging will help make owning an EV fairer and attractive to even more people."

Reacting to June's registration figures, Novuna Vehicle Solutions managing director Jon Lawes said: "Demand from fleets for EVs continues to grow but we urgently need a long-term strategy for building advanced automotive manufacturing supply chains in the UK if we are to realise a sustained uptake of electric vehicles. 

"At the heart of the problem is the requirement to deliver domestic lithium battery manufacturing at scale which is critical if we are to drive down the cost of EVs for private buyers and achieve zero emission mobility.

"Without a resilient, self-sufficient UK-based battery manufacturing capacity, our ability to make and export EVs and be at the forefront of the net-zero revolution hangs in the balance."

Lex Autolease managing director Nick Williams said: "The number of new low emission vehicles already being introduced doesn't just help drive the electric transition for today, it also ensures a steady supply of second-hand EVs, which will be critical to help make going electric more accessible to all in the future. 

"As we wait for the outcomes of the ZEV mandate, we hope to see the finalised legislation further serve to ensure EV availability in the UK, both for the new and used markets, as well as further investment in innovation and charging capabilities."

 

 



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