New Car Registrations Continue to Rise with Fleet Market Leading the Way
In May 2024, new car registrations in the UK saw a 1.7% increase compared to the same month the previous year, marking the 22nd consecutive month of growth. This growth was primarily driven by the fleet and business market, with fleet sales increasing by 14% and sales to businesses rising by 9.5%. However, private sales experienced a significant decline of 12.9% year on year.
Despite the overall growth, new car sales in May 2024 were still down 19.6% compared to pre-Covid levels in 2019. This indicates that the automotive industry is still recovering from the impact of the pandemic.
Shift Towards Electric Vehicles
One notable trend in the UK car market is the continued shift towards electric vehicles (EVs). Sales of plug-in hybrids increased by 31.5% year on year, while battery-electric vehicle (BEV) registrations rose by 6.2%. BEVs now hold a market share of 17.6%.
However, it is important to note that private BEV registrations actually decreased by 2% compared to May of the previous year. This suggests that there may be some resistance among private buyers when it comes to adopting electric vehicles. In order to meet government-mandated targets for zero-emission vehicles, manufacturers will need to work on increasing the appeal and accessibility of EVs for private buyers.
The Need for Government Support
The Society of Motor Manufacturers and Traders (SMMT), which represents the UK automotive industry, has called for more support from the government. SMMT Chief Executive Mike Hawes emphasized that while manufacturers have made significant progress in offering electric models and attractive offers, they cannot sustain this level of support indefinitely.
Hawes stressed the importance of a faster and fairer transition to zero-emission vehicles, stating that it requires “carrots, not just sticks.” This suggests that the government should provide incentives and support to both manufacturers and consumers in order to accelerate the adoption of electric vehicles.
Best-Selling Cars in May 2024
The top three best-selling cars in May 2024 were the Kia Sportage, Ford Puma, and Audi A3. The Ford Puma has maintained its position as the best-selling car of the year so far, with the Sportage, Nissan Qashqai, and A3 following closely behind.
Conclusion
The growth in new car registrations in May 2024, driven by fleet sales and business purchases, is a positive sign for the UK automotive industry. However, private sales have declined, indicating a potential need for more incentives and support to encourage private buyers to choose electric vehicles.
The shift towards electric vehicles is evident, with plug-in hybrids and battery-electric vehicles gaining market share. However, there is still work to be done to increase private adoption of EVs.
The industry’s call for government support highlights the need for a collaborative effort to achieve a faster and fairer transition to zero-emission vehicles. By providing incentives and support, the government can play a crucial role in driving the growth of the electric vehicle market and ensuring a sustainable future for the automotive industry.
