The brand new automobile market grew 25.8% in June with 177,266 autos registered, in accordance with the most recent figures from the Society of Motor Producers and Merchants (SMMT). The June efficiency marks the eleventh consecutive month of development because the trade step by step overcomes the pandemic-induced provide chain shortages that constrained manufacturing for a lot of the earlier two years. With ready occasions easing and pent-up demand being met, the sector is a uncommon brilliant spot in a depressing financial panorama although general market volumes stay under pre-pandemic ranges.¹

Progress within the month was pushed predominantly by giant fleet registrations, up 37.9% to 92,699 items, reflecting the normalisation of provide. Non-public demand grew extra modestly, up 14.8% to 79,798 items.

Deliveries of petrol automobiles elevated 22.7%, to stay the most well-liked powertrain, whereas these of hybrids (HEVs) and plug-in hybrids (PHEVs) additionally rose, by 40.1% and 65.5% respectively. Diesel registrations had been down -13.5%.² Battery electrical car (BEV) registrations, in the meantime, grew once more, with the section up 39.4% as 31,700 consumers selected to get behind the wheel of a zero emission automobile – 17.9% of the overall market. It’s enterprise and fleets, nonetheless, somewhat than personal consumers, that proceed to drive this development, due to the engaging fiscal incentives on supply. Though producers are providing a variety of BEV offers for personal consumers, together with versatile subscription fashions and engaging finance charges, extra may very well be completed by different stakeholders to make buying much more compelling.

Nearly one million (949,720) new automobiles joined UK roads within the first six months of 2023, with complete registrations up 18.4% and BEV uptake at file ranges with 152,968 deliveries thus far this yr – some 13 occasions higher than the identical interval in 2019.³ BEV market share for 2023 is now 16.1% however, with a zero emission car mandate requiring 22% BEV registrations per producer on account of come into drive in lower than six months’ time, extra must be completed to speed up the transition.

Provided that recharging an EV at dwelling can supply a 60-70% value per mile saving in contrast with refueling a petroleum or diesel car, the trade is asking for a reduce in VAT on public charging to assist quicken uptake.⁴ Drivers in a position to cost at dwelling pay simply 5% VAT to energy up their EV, in contrast with 20% for these with out entry to a driveway or designated personal parking house who’re reliant on the general public community. VAT fairness would make switching to an electrical car possible for extra individuals no matter dwelling possession or property standing.

Mike Hawes, SMMT Chief Government, stated,

The brand new automobile market is rising again and rising inexperienced, because the points of interest of electrical automobiles turn into obvious to extra drivers. However assembly our local weather objectives means we have now to maneuver even quicker. Most electrical car house owners benefit from the comfort and price saving of charging at dwelling however those who wouldn’t have a driveway or designated parking house should pay 4 occasions as a lot in tax for a similar quantity of power. That is unfair and dangers delaying higher uptake, so reducing VAT on public EV charging will assist make proudly owning an EV fairer and engaging to much more individuals.

1 June 2019 – 223,421 items registered
2 Petrol and diesel together with delicate hybrid registrations
3 11,975 BEVs registered H1 2019
4 RAC Cost Watch – https://www.rac.co.uk/drive/electric-cars/charging/electric-car-public-charging-costs-rac-charge-watch/

SOURCE: SMMT