New car market enjoys two years’ of growth

6th August 2024

The UK new car market has grown for two consecutive years after figures from the Society of Motor Manufacturers and Traders (SMMT) revealed 2.5% growth in July.

It found that there were 147,517 new car sales last month, making it the best July since 2020.

July’s growth was sustained entirely by the fleet sector, which recorded a 13% increase in registrations to achieve a 62% market share. However, private demand fell by 11.1% to account for 36.2% of sales.

Meanwhile, electrified vehicle demand outpaced the overall market, accounting for more than four in 10 (42%) new cars registered in the month. Hybrid electric vehicle (HEV) uptake increased by 31.4% to achieve a 14.5% market share, while plug-in hybrids (PHEV) grew 12.4% to take 8.9% of registrations.

Battery electric vehicle (BEV) volumes, meanwhile, were up 18.8%, resulting in an overall market share of 18.5%.

New car market enjoys two years’ of growth

Mike Hawes, SMMT chief executive, said: “Two years of new car market growth against a backdrop of a turbulent economy is testament to the sector’s resilience and the attractiveness of the deals on offer. Weakening private retail demand, however, particularly for EVs and despite generous manufacturer discounts, is the over-riding concern.

“More people than ever are buying and driving EVs but we still need the pace of change to quicken, else the UK’s climate change ambitions are threatened and manufacturers’ ability to hit regulated EV targets are at risk. Achieving market transition at the pace demanded requires greater support for consumers and, with the all-important new numberplate month of September beckoning, action on incentives and infrastructure is needed now.”