SMMT: March new automobile market sustains development as producers shore up electrified demand

The UK new automobile market clocked up its twentieth consecutive month of development in March, with a ten.4% rise in registrations. In what is often the busiest month of the 12 months because of the new numberplate, 317,786 new automobiles reached the street with a 24 plate – the perfect March efficiency since 2019, though nonetheless -30.6% under pre-pandemic ranges.¹

Development was once more pushed by fleet funding, up 29.6% because the sector continues to recuperate following the constrained provide of earlier years. Registrations by personal patrons fell by -7.7%, with a difficult financial backdrop of low development, weak client confidence and excessive rates of interest. The small enterprise registration phase, in the meantime, declined -8.0%.

Petrol automobiles retained the lion’s share of the market, at 55.7%, with registrations up 9.2% 12 months on 12 months, as diesel volumes fell -2.7% to account for simply 7.3% of demand. Uptake of hybrid electrical autos (HEVs) reached file ranges, rising by 19.6% to 44,550 items and 14.0% of the market, whereas the most important proportion development was recorded by plug-in hybrids, up by greater than a 3rd to 24,517 items, or 7.7% of all new registrations. Conversely, whereas battery electrical automobile (BEV) registration volumes had been at their highest ever recorded ranges, market share fell by one proportion level from the identical month final 12 months, down to fifteen.2%. Registrations rose 3.8%, with solely fleets exhibiting any quantity development.

The autumn in BEV market share inside a rising market underscores the necessity for presidency to help shoppers to hurry up fleet renewal. Massive fleets proceed to drive BEV uptake, thanks to forcing tax incentives however whereas registration volumes elevated in March, market share declined. A troublesome financial backdrop makes it ever more difficult for shoppers to spend money on these new applied sciences.

Producers themselves are providing beneficiant incentives, serving to extra drivers swap to zero emission autos and ship authorities and trade carbon targets, however this can’t be sustained indefinitely.² A full market transition wants incentives not only for fleet and enterprise patrons however personal retail patrons as properly, one thing that will carry the UK into line with different main markets. Quickly halving VAT on BEVs, revising the brink for the costly automobile complement on Automobile Excise Obligation subsequent April, and abolishing the ‘pavement penalty’ on public EV charging by equalising VAT charges to five% in step with house charging, would make a big distinction to shoppers, serving to extra of them transfer to zero emission autos sooner.

Mike Hawes, SMMT Chief Govt, stated,

Market development continues, fuelled by fleets investing after two powerful years of constrained provide. A sluggish personal market and shrinking EV market share, nevertheless, present the problem forward. Producers are offering compelling provides, however they’ll’t single-handedly fund the transition indefinitely. Authorities help for personal shoppers – not simply enterprise and fleets – would ship a constructive message and ship a quicker, fairer transition on time and on the right track.

1 March 2019: 458,054 registrations
2 What Automobile analysis reveals EV reductions have elevated by 204% since January 2023

SOURCE: SMMT