Deliveries of new cars fell by -2% in the UK during November, with 153,610 joining the road, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT). It is the second consecutive monthly decline, and the third decline in four months.
Demand from private buyers, among whom uptake has waned for two years, dropped by -3%. Feet purchases, which represent the bulk (60%) of the market, fell by -1%.
Battery electric vehicle (BEV) registrations, meanwhile, rose for an eleventh successive month, up 58%, representing 25% of the overall market but driven by heavy manufacturer discounting. November is just the second month this year in which BEV uptake has reached mandated levels, albeit against the backdrop of a declining overall market.
Commenting on November’s new car registration figures, Toby Poston, BVRLA Director of Corporate Affairs said: “The November registration data shows that ZEV registrations are heading in the right direction, but the market remains imbalanced. Electric vehicle sales are still being propped up by unsustainable levels of discounting from OEMs and the huge depreciation being absorbed by leasing companies. Demand is still too fragile on the consumer side, which is a critical piece of the puzzle if the targets are to be hit year on year.
“New EV registrations tell but half the story. The used market props up the new, with massive depreciation on electric vehicles threatening to bring both to a standstill. The leasing sector accounts for roughly two in three new BEV vehicles purchased. The sector has spent an estimated £32bn on new BEVs since 2018. In return, it has been left to shoulder the cost of collapsing used BEV values and high depreciation. It cannot afford to do that indefinitely.
“A healthy new car market does not exist without a buoyant used one to absorb its supply. If the UK is to meet its mandate targets, government support for used EVs is overdue.”
Meanwhile, the new light commercial vehicle (LCV) market recorded its fourth consecutive month of growth as registrations rose by 10.5% in November. With 30,300 new vans, pick-ups and 4x4s registered, it was the second biggest November in history for the market.
Electric van uptake grew for the second consecutive month after four months of decline, rising by 37%, in part supported by the Plug-in Van Grant, which will now continue for the next financial year. Market share also rose, from 6.1% to 7.7%. However, government has mandated that 10% of each brand’s new van registrations must be zero emission this year and year-to-date market share has reversed compared with 2023, down from 5.9% to 5.8%.
