The UK new automotive market grew by 9.5% in November to achieve 156,525 items, based on the most recent figures from the Society of Motor Producers and Merchants (SMMT). Available in the market’s finest November for 4 years, registrations nearly returned to pre-pandemic ranges, down simply 96 items (-0.1%) on 2019.¹

Progress was pushed totally by fleets investing within the newest autos, with registrations rising 25.4% to account for 93,049 items and 59.4% of the market. Personal demand was depressed, dropping -5.9% to 60,506 registrations, whereas enterprise uptake fell -32.7% to 2,970 items. Yr thus far, nonetheless, the general market stays up 18.6% at 1.762 million items, with a return to development within the company market fuelling a restoration that has been underway for 16 months.

November proved a robust month for each hybrid electrical autos (HEVs) and plug-in hybrid autos (PHEVs), rising by 27.8% and 55.8% respectively. Fleets additionally continued to transition to battery electrical autos (BEVs), buoyed by compelling tax incentives. Of the 24,359 new BEVs reaching the street in November, 77.4% have been taken on by fleets and companies. Whereas general BEV volumes fell by -17.1%, resulting in a diminished market share of 15.6%, final November was atypical with vital deliveries following provide chain disruptions. Yr thus far, BEV uptake is up 27.5% with a 16.3% market share – anticipated to rise to 22.3% subsequent yr.²

Nevertheless, with new regulation coming into pressure in January mandating that 22% of every producer’s new car registrations should be zero emission, sustained restoration depends upon inspiring customers with fiscal incentives, in addition to larger funding in important charging infrastructure that provides drivers confidence. Halving VAT on new BEVs and decreasing VAT on public charging to five% consistent with dwelling charging would enhance the attractiveness of driving electrical and make the zero emission transition extra accessible to a bigger variety of customers.

Much more pressing is the necessity to delay harder new UK-EU Guidelines of Origin which is able to start on 1 January 2024. Failure to postpone these guidelines would see EVs traded each methods incur tariffs that might increase costs for customers at a vital second within the transition. With lower than 4 weeks to go, carmakers and governments on each side of the Channel have referred to as for a typical sense method to retain the present EV battery guidelines for an additional three years, which is able to assist shopper selection and affordability.

Mike Hawes, SMMT Chief Govt, stated,

Britain’s new automotive market continues to get well, fuelled by fleets investing within the newest and greenest new autos. With automotive makers gearing as much as meet their duties underneath new market laws, and COP28 at present underway, now could be the time to take smart steps that may multiply that financial development and minimise carbon emissions. Personal EV consumers want incentives consistent with those who have so efficiently pushed enterprise uptake – and workable commerce guidelines that promote relatively than penalise the transition.

1 November 2019 new automotive registrations: 156,621
2 SMMT Market Outlook, printed November 2023

SOURCE: SMMT