Car gross sales hit 20-year February report
- Highest February new automotive gross sales whole since 2004, SMMT figures present
- Primary progress as a consequence of fleets and companies with non-public uptake dwindling
- Public demand for EVs keep low with requires Chancellor to will increase incentives
Only a day earlier than Chancellor Jeremy Hunt makes his newest Budget assertion, the UK’s new automotive market has posted its report February efficiency in 20 years.
With autos being big-ticket gadgets, the sale of latest motors typically supplies a sign of financial exercise.
And the most recent numbers present that automotive registrations rose 14 per cent to 84,886 items final month, the Society of Motor Manufacturers and Traders mentioned.
However, nearer scrutiny of the information exhibits that it’s primarily fleets and companies propping up the market – and the information exhibits that public demand for electrical autos (EVs) is continuous to dwindle.
New automotive gross sales information for final month present the UK’s new automotive market has posted its report finest February for 20 years
SMMT figures present new automotive registrations rose 14 per cent to 84,886 items – the most effective since 2004
Last month was the best February gross sales whole of latest vehicles since 2004, when greater than 91,000 autos have been registered, the automotive commerce physique confirmed.
This report month additionally marks the nineteenth of consecutive progress, bucking the pattern of February historically being a low quantity month as a consequence of patrons ready till March for brand new quantity plate registrations.
The major drivers of progress have been fleets investing within the newest autos, with companies and fleets chargeable for the whole thing of February’s improve.
Registrations for fleets have been up over 1 / 4 – 25.2 per cent – whereas companies have been up 15.5 per cent.
In stark distinction, non-public uptake has continued to wrestle with a 2.6 per cent decline, with non-public gross sales now solely making up a 3rd (33.7 per cent) of the brand new automotive market share.
The UK new automotive market is rising very nicely, nevertheless it’s bouyed by enterprise and fleet gross sales which make up all the expansion, as non-public gross sales are down -2.6 per cent
Petrol vehicles characterize the most important whole gross sales with battery electrical autos (BEVs) representing the second highest gross sales section
It’s an identical case with battery electrical vehicles, with fleet uptake far outweighing that of purchases by common motorists.
EV uptake outstripped the remainder of the market, rising 21.8 per cent to a grand whole of 14,991 registrations. This accounts for 17.7 per cent of whole regs and is a nostril forward of final 12 months’s 16.5 per cent share.
However, non-public patrons account for lower than one in 5 (18.2 per cent) of latest EVs registered in 2024 to date – the rise on uptake is totally as a consequence of fleets.
Despite January marking the one millionth EV to hit the street in Britain, public demand for battery vehicles has stagnated in latest months.
It could not come at a worse time for automotive makers, with 2024 marking the primary 12 months the Zero Emission Vehicle Mandate (ZEV mandate) comes into play.
The ZEV mandate requires 22 per cent of latest automotive gross sales to be electrical by the tip of the 12 months, with particular person producers going through £15,000-per automotive fines for each quantity beneath that threshold.
The SMMT’s information present that, on common, automotive makers are monitoring round 4 proportion factors beneath the goal.
Ahead of Chancellor Jeremy Hunt’s Budget tomorrow, the SMMT and different main business figures are calling on the Government to scale back taxation of electrical autos and enhance incentives supplied to personal patrons
The SMMT is looking for ‘fairer’ taxation of EVs forward of Wednesday’s Budget as non-public uptake continues to wrestle.
Mike Hawes, SMMT Chief Executive, mentioned: ‘The new automotive market’s skill to ship progress continues with its finest February for 20 years and this week’s Budget is a chance to make sure that progress is greener.
‘Tackling the triple tax barrier because the market embarks on its busiest month of the 12 months would increase EV demand, reducing carbon emissions and energising the financial system.
‘It will ship a sooner and fairer zero emission transition, placing Britain’s EV ambition again within the quick lane.’
A bridge of the hole between petrol and diesel and electrical for a lot of non-public patrons are hybrid vehicles, which additionally posted promising progress figures.
Steppingstone plug-in hybrids (PHEVs) had the most important proportional progress for the month rising 29.1 per cent to hit 7.2 per cent market share. Hybrids additionally rose 12.1 per cent however the year-on-year market share was barely smaller at 12.7 per cent.
The Ford Puma was final 12 months’s best-selling new automotive, and the SUV is already the best-selling mannequin of January and February this 12 months
The Tesla Model Y was final 12 months’s best-selling new electrical automotive within the UK and is the one all-electric automotive to seem within the prime 10 hottest new vehicles to date this 12 months
SUVs are vastly widespread at the moment, it is not stunning that six out of 10 of the preferred vehicles final month have been SUVs
Ford Puma returns to the highest of the gross sales chart
The hottest fashions have been the Ford Puma, and two Volkswagens: The Golf and the T-Roc. Considering the large reputation of SUVs, it is not stunning that six out of 10 of the preferred vehicles final month have been SUVs.
The Puma takes prime spot this 12 months so far, which places it on an early trajectory to take best-selling automotive of the 12 months for the second 12 months in a row.
The Tesla Model Y – the best-selling new electrical automotive of 2023 – was the one electrical automotive to seem within the prime 10.
While there are nonetheless monetary challenges for brand new automotive patrons to beat within the present local weather the outlook is constructive and new automotive progress continues post-pandemic.
Richard Peberdy, UK Head of Automotive for KPMG, mentioned: ‘Ongoing strain on family budgets and the next price of automotive finance imply that it is nonetheless a troublesome financial interval for many individuals wanting to purchase a brand new automotive, and a problem for these attempting to promote them.
Overall, the UK market continues to carry up comparatively nicely to this problem, boosted by flowing provide of latest autos, discounting on many forecourts, and export demand.’
