Volkswagen dominated as UK new automobile gross sales reached 1.9 million in 2023

Volkswagen dominated the UK’s new automobile market in 2023, ending the yr with 162,087 registrations and market share of 8.52%, virtually an entire share 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 at the moment are greater than 20 new automobile manufacturers which have lower than 1% share of the UK market. This consists of an inflow of recent manufacturers equivalent to Ineos, BYD and Fisker, along with some long-established carmakers which have declined, equivalent to Fiat, Jaguar, Jeep and SsangYong.

Extra new entrants within the subsequent few years will dilute the market additional, if they don’t drive out a number of the stragglers, making model alternative 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 stage for the reason that pandemic, with 1,903,054 new automobile registrations, a 17.9% year-on-year improve.

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

Registrations of battery electrical automobiles (BEV), also referred to as pure electrical vehicles, rose virtually 50,000 items to 314,687 new registrations by the year-end. The BEV share of the market was flat, at 16.5%, which is able to concern some business observers given the ZEV Mandate now launched and a comparatively brief timespan to persuade most new automobile prospects that an EV needs to be their alternative. At the moment 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 more likely to be risky 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 automobile provide challenges fading, the brand new automobile market is constructing again with one of the best yr for the reason that pandemic. Energised by fleet funding, notably 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 automobiles. 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 presently forecasts the 2024 new automobile market to succeed in 1.97 million items, of which 439,000 shall be BEVs to attain 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 outcome speaks volumes for the standard and attractiveness of our vehicles, and for the implausible work of our community companions, who proceed to present prospects excellent service earlier than, throughout and after delivering their new vehicles.

“This yr we’ll proceed to increase our award-winning ID. vary of electrical vehicles, and naturally we’ve got the fiftieth anniversary of the Golf in addition to many extra thrilling new merchandise to sit up for.”

John Veichmanis, chief govt of Carwow, stated its latest information revealed that 80% of drivers are contemplating an EV as their subsequent automobile this yr, in efforts in the direction of a greener 2024. Whereas this is encouraging, he stated, to make sure those that are contemplating switching really make the change, there may be clearly extra to be executed by way of 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) automobile gross sales ban till 2035 will “proceed to characterize one of the vital marked challenges to the UK’s EV transition going ahead”, as OEMs try to supply a extra compelling proposition to shoppers to make the change.

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

“As auto corporations within the UK look to construct on a big yr of development in 2023, placing the precise steadiness between their ICE and EV priorities shall be important. The ZEV Mandate will immediate OEMs to put 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 Automobiles (PHEVs) having the best development of all powertrain sorts at almost 40% for the yr, it’s clear that they’re a part of the answer to supply shoppers with consolation amid any hesitancy they could must go all electrical within the close to time period.”

On the Nationwide Franchised Sellers Affiliation, chief govt Sue Robinson stated the dearth 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 ready to be an necessary yr for the UK automotive sector notably with the continued shift in the direction of electrical. With the ZEV mandate changing into legislation on Wednesday, electrical automobiles look set to progressively improve their market share and achieve floor on petrol automobiles which presently maintain the most important market share within the UK.

“Nonetheless, these figures define that there stays necessary points which the Authorities might want to deal with for the yr forward equivalent to the supply 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 wanting set to supply incentives for EVs. It can even be attention-grabbing to view the progress of recent Chinese language producers which is able to enter the UK market this yr.

“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 focus on the problems affecting the auto retail sector and guarantee optimistic progress is made to profit the business, client and surroundings .”