Volkswagen dominated the UK’s new automobile market in 2023, ending the 12 months with 162,087 registrations and market share of 8.52%, nearly a complete proportion level forward of nearest rival Ford’s 7.57%.

Solely seven automobile manufacturers achieved market share above 5%: VW, Ford, Audi, BMW, Toyota, Kia and Vauxhall.

In distinction, there are actually greater than 20 new automobile manufacturers which have lower than 1% share of the UK market. This contains an inflow of recent manufacturers reminiscent of Ineos, BYD and Fisker, along with some long-established carmakers which have declined, reminiscent of Fiat, Jaguar, Jeep and SsangYong.

Extra new entrants within the subsequent few years will dilute the market additional, if they don’t pressure out a few of the stragglers, making model selection much more difficult for each franchised sellers and UK motorists.

The Society of Motor Producers and Merchants celebrated that the UK’s new automobile market reached its highest degree because the pandemic, with 1,903,054 new automobile registrations, a 17.9% year-on-year enhance.

Non-public demand has stagnated, nevertheless, with 817,673 gross sales a 0.1% drop on 2022’s personal gross sales. It was the fleet section which recorded all the expansion, as elevated ranges of recent automobile provide drove OEMs to resupply the company, rental and personal fleet clients that had been de-prioritised in the course of the current provide constraints.

Registrations of battery electrical autos (BEV), also called pure electrical automobiles, rose nearly 50,000 items to 314,687 new registrations by the year-end. The BEV share of the market was flat, at 16.5%, which can concern some trade observers given the ZEV Mandate now launched and a comparatively quick timespan to persuade most new automobile clients that an EV must be their selection. At present only one in 11 personal patrons picks a pure electrical automobile. Three quarters of BEV registrations are within the fleet market, the place taxation advantages incentivise them.

The SMMT additionally warned that he subsequent few months are additionally prone to be unstable because of the regulatory uncertainties which have beset the market over the previous few months – most clearly the last-minute deal on UK-EU Guidelines of Origin, which avoids tariffs on EVs however which has made planning tough.

Mike Hawes, SMMT chief govt, stated: “With car provide challenges fading, the brand new automobile market is constructing again with the very best 12 months because the pandemic. Energised by fleet funding, significantly within the newest EVs, the problem for 2024 is to ship a inexperienced restoration.

“Authorities has challenged the UK automotive sector with the world’s boldest transition timeline and is investing to make sure we’re a serious maker of electrical autos. It should now assist all drivers purchase into this future, with client incentives that can make the UK the main European marketplace for ZEVs.”

The SMMT at the moment forecasts the 2024 new automobile market to achieve 1.97 million items, of which 439,000 shall be BEVs to realize a 22.3% market share.

Rod McLeod, director of Volkswagen UK, stated: “I’m as soon as once more happy that Volkswagen has secured prime spot within the UK for new-car gross sales. This large end result speaks volumes for the standard and attractiveness of our automobiles, and for the improbable work of our community companions, who proceed to present clients excellent service earlier than, throughout and after delivering their new automobiles.

“This 12 months we are going to proceed to broaden our award-winning ID. vary of electrical automobiles, and naturally we now have the fiftieth anniversary of the Golf in addition to many extra thrilling new merchandise to stay up for.”

John Veichmanis, chief govt of Carwow, stated its current knowledge revealed that 80% of drivers are contemplating an EV as their subsequent automobile this 12 months, in efforts in direction of a greener 2024. Whereas this is encouraging, he stated, to make sure those that are contemplating switching truly make the change, there’s clearly extra to be finished via monetary incentives, clear communication from authorities and confidence within the charging community.

David Borland, EY UK & Eire automotive chief, stated the disparity between the timing of the ZEV Mandate and the UK Authorities’s delay to the Inside Combustion Engine (ICE) car gross sales ban till 2035 will “proceed to characterize one of the crucial marked challenges to the UK’s EV transition going ahead”, as OEMs try to offer a extra compelling proposition to customers to make the swap.

“And with query marks remaining across the residual values of EVs, whereas the present profitability of EV gross sales seems stretched, the highway forward will definitely be a fancy one,” he added.

“As auto firms within the UK look to construct on a major 12 months of development in 2023, putting the best stability between their ICE and EV priorities shall be important. The ZEV Mandate will immediate OEMs to position an rising give attention to EVs and the way they handle the complexities of product planning, however the full portfolio of powertrain applied sciences should proceed to be thought-about. With Plug in Hybrid Electrical Autos (PHEVs) having the very best development of all powertrain sorts at almost 40% for the 12 months, it’s clear that they’re a part of the answer to offer customers with consolation amid any hesitancy they might should go all electrical within the close to time period.”

On the Nationwide Franchised Sellers Affiliation, chief govt Sue Robinson stated the shortage of readability from the Authorities on EVs, such because the pushing again of the ICE ban from 2030 to 2035, seems to have impacted client confidence on electrical.

“2024 is about to be an necessary 12 months for the UK automotive sector significantly with the continued shift in direction of electrical. With the ZEV mandate changing into regulation on Wednesday, electrical autos look set to progressively enhance their market share and acquire floor on petrol autos which at the moment maintain the biggest market share within the UK.

“Nevertheless, these figures define that there stays necessary points which the Authorities might want to deal with for the 12 months forward reminiscent of the provision of EV charging infrastructure throughout the nation. The UK additionally stays the one main market in Europe with out incentives for personal patrons with France just lately introducing measures and Italy additionally trying set to supply incentives for EVs. It should even be fascinating to view the progress of recent Chinese language producers which can enter the UK market this 12 months.

“With the Spring Price range introduced for March and a Normal Election anticipated in Autumn, it’s a politically and fiscally necessary time for the sector and the NFDA will proceed to to spotlight the problems affecting the auto retail sector and guarantee constructive progress is made to learn the trade, client and setting .”