The UK new car market rose 1% in the key ‘74’ plate change month of September, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).
Growth was again driven by fleet purchases, up 4% and representing 54% of the overall market. Uptake of plug-in hybrids (PHEV) grew faster than any other fuel type in the month, up 32% to take an 9% share of the market. Demand for the latest battery electric vehicles (BEV) hit a new record volume in September, up 24% to 56,387 units, achieving a 21% share of the overall market. Fleets drove much of this growth, with deliveries rising 37% to account for more than three quarters (76%) of BEV registrations. Private BEV demand also rose after manufacturer discounting. Consumer demand for diesel grew at a faster rate, increasing 17% in September. Year-to-date private BEV demand remains down -6%.
Commenting on September’s new car registration figures, Gerry Keaney, BVRLA Chief Executive said: “September’s figures show that BEV registrations have gained some much-needed momentum, on the back of heavy discounting from manufacturers and sustained investment from business fleets.
“This growth is welcome but will remain unstable and unsustainable unless the Government comes up with a long-term strategy for supporting the BEV market towards its ambitious ZEV Mandate and Phase Out targets.
“Collapsing used BEV values – down 60% over two years and forecast to continue falling – have already led to an anticipated loss of 220,000 new EV sales. That ground now needs to be made up. Falling used values are eroding the confidence of fleet buyers and making the most popular way of financing a new electric car more expensive.
“We need used EV-targeted grants, tax incentives and a confidence-building communication campaign to boost retail demand and stabilise prices.”
Meanwhile, new light commercial vehicle (LCV) registrations are up 8% in the best September for four years. Battery electric van (BEV) uptake fell -0.5%, down for the sixth time in 2024 with market unlikely to reach the mandated 2024 zero emission vehicle targets.
The SMMT and 12 major vehicle manufacturers have written to the Chancellor, calling for long-term provision of the Plug-in Van Grant and mandated van-suitable chargepoint rollout.
Also see the Zero Emission Van Plan 2024.
