UK cuts sales forecast
The outlook for new-car sales in the UK for 2024 has been trimmed with weak private retail demand for electric vehicles (EVs) an overriding concern.
The Society of Motor Manufacturers and Traders (SMMT) says it expects 1.97 million registrations this year after cutting the total from a previous prediction of 1.98m units.
It comes despite figures from the SMMT showing 147,517 new cars were sold last month, which was up by 2.5 per cent from a year ago and the best July since 2020. The latest increase also marks two years of consecutive growth.
July’s growth was sustained by the fleet sector, which recorded a 13 per cent jump in registrations to achieve a 62 per cent market share. Private demand fell by 11.1 per cent and represented 36.2 per cent of deliveries.
Electrified vehicles accounted for 42 per cent of new cars registered in July. The uptake of hybrids grew by 31.4 per cent to achieve a 14.5 per cent market share, while plug-in hybrids (PHEVs) rose 12.4 per cent to take 8.9 per cent of registrations.
Battery electric vehicle (BEV) sales were up 18.8 per cent for an 18.5 per cent slice of the market.
The SMMT notes the private share of the BEV market continues to fall – 17.2 per cent went to private buyers, compared with 20.3 per cent last year. Overall, BEVs account for 16.8 per cent of the new car market, year to date.
With zero-emissions vehicles mandated to comprise a minimum 22 per cent of each marque’s new car registrations over the full year, it says the pace of transition needs to increase significantly.
While the SMMT anticipates market growth in 2024, its overall expectations have been trimmed and the anticipated BEV share has also been revised downwards to 18.5 per cent from the 19.8 per cent expected in April.
Mike Hawes, SMMT chief executive, is calling on the UK government to boost incentives and infrastructure for consumers to accelerate the market’s transition to EVs.
“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,” he says.
“Weakening private retail demand, however, particularly for EVs and despite generous manufacturer discounts, is the overriding 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.”
