9:47 am, October 4, 2024
September’s new plate day saw the UK new car market grow by 1% to 275,239 units, according to new data from the SMMT.
The result marks the best September for the industry since 2020 but is still 19.8% down on the same period in 2019 – the final year before Covid began affecting results.
Experts say that the impressive growth was largely driven by improved fleet purchases, which rose by 3.7% to 149,095 units – a market share of 54.2%.
On the flip side, private consumer demand fell by 1.8% to 120,272 units, giving them a 43.7% market share, and the smaller business sector accounted for just 5,872 registrations, representing a year-on-year fall of 8.4%.
When it came to powertrains, EVs enjoyed a record month with 56,387 units registered, marking a rise of 24.4%.
As with the market more generally, EV growth was fuelled by fleet sales, with deliveries rising 36.8% to account for more a whopping 75.9% of registrations.
There was also a growth in private EV demand, which was up 3.6%, largely as a result of ‘unprecedented manufacturer discounting’.
However, the SMMT says that the result is ‘not enough’ and admitted that EV demand overall is ‘barely moving’.
In the year to date, EVs’ market share has remained stubbornly low at 17.8% and is only expected to reach 18.5% by the close of the year. Year-to-date private EV demand also remains 6.3% down.
In response, the SMMT has joined a number of brands in penning an open letter to the government calling for more incentives on new EVs.
Away from full EVs, uptake of plug-in hybrids grew faster than any other fuel type in the month, up 32.1% to take an 8.9% share of the market.
Hybrid electric vehicle registrations rose 2.6%, boosting market share to 14.2%, while petrol and diesel registrations declined by 9.3% and 7.1% respectively.
Despite this, the two traditional powertrains were still the choice of 56.4% of buyers in September.
When it came to models, the Kia Sportage was September’s best-seller with 7,482 registrations, while the Ford Puma remains the best performer throughout the year so far on 38,944.
Mike Hawes, SMMT chief executive, said: ‘September’s record EV performance is good news, but look under the bonnet and there are serious concerns as the market is not growing quickly enough to meet mandated targets.
‘Despite manufacturers spending billions on both product and market support – support that the industry cannot sustain indefinitely – market weakness is putting environmental ambitions at risk and jeopardising future investment.
‘While we appreciate the pressures on the public purse, the Chancellor must use the forthcoming Budget to introduce bold measures on consumer support and infrastructure to get the transition back on track, and with it the economic growth and environmental benefits we all crave.’
How has the industry reacted?
‘We need to see further levels of support from Government’
‘Electric vehicle sales surged in September to claim a 20%-plus share of the market, in the key plate-change month for the industry, but it still won’t be enough for many manufacturers to hit sales targets under the Zero Emissions Vehicle mandate.
‘Record discounts are driving the interest as brands and retailers do all they can to stimulate sales, showing once again just how sensitive the market is to financial incentives, and the importance of overcoming the current EV cost barrier.
‘These efforts are also reflected in the strongest interest in new EVs on our platform for more than two years, a good sign that the remaining months of 2024 should also see strong new EV sales.
‘That said, there’s still much to do to drive further levels of interest and actual sales – and discounts can only last so long.
‘Given affordability is such a key driver of purchase, other measures are needed to help buyers make the switch to electric cars which still carry a 30% price premium over their ICE counterparts.
‘More affordable EVs are hitting the market from both established and new brands alike, but we need to see further levels of support from Government if we’re to hit the new regulatory targets without inflicting significant damage to the industry.’
Ian Plummer, commercial director Auto Trader
‘All eyes on the budget’
‘With many buyers waiting until September’s new number plate, it is no surprise that new car sales soared last month, especially in comparison with August which is always a quieter month for the.
‘EV sales remained strong, attracting buyers thanks to both a range of new models and heavy discounts from car manufacturers.
‘If Labour is to reinstate the 2030 ban on sales of new cars running solely on petrol or diesel, they also need to send a positive message to prospective EV buyers, reintroducing tax incentives for private buyers and committing to investing in greater charging infrastructure.
‘The mass move to electric depends on both of these things so all eyes will be on Labour’s Autumn budget on 30th October to see if they plan to deliver.’
James Wilson, COO of Motorway
Month’s results define how the year will end
‘September’s new car market was less about the headline growth and more about how it was achieved. EV sales surged due to unprecedented discounting, masking weak underlying demand, especially among private buyers.
‘Fleet purchases drove the market, while private demand dropped, reflecting ongoing financial strain from the Zero Emission Vehicle (ZEV) mandate.
‘The month’s results define how the year will end, with manufacturers and industry bodies calling for more support as the gap between EV targets and real consumer behaviour widens.
‘The 2024 figures are essentially set, but the focus shifts to the potential challenges in 2025.
‘The market may face further disruption if current dynamics persist, including heavy reliance on discounts and weak private EV demand. Structural changes and more substantial incentives will be crucial to ensure sustainable growth moving forward.’
Philip Nothard, insight director at Cox Automotive
‘Electric car market is fizzing with life’
‘The UK’s electric car market is fizzing with life. Electric car registrations grew by almost a quarter in September, with one in five new cars an EV. It’s great to see more people than ever before switching to cleaner, cheaper driving.
Sensible government policy is driving an emerging great British success story, with electric car registrations here outperforming the rest of Europe. We are in a global race to get EVs on the roads and Britain is pulling into the fast lane.
The UK car market is going through a period of profound change, and parts of the retail industry are moving quicker than others. Fortunately the vast majority of people in the UK will feel the climate and air pollution benefits no matter how clean vehicles are sold.
Ben Nelmes, CEO of New AutoMotive
Fleet statistics continue to skew EV data
‘September’s new plates have contributed to a further rise in registrations. However, fleet statistics continue to skew electric vehicle (EV) data.
‘We have started to see an increase in discounts and price reductions to try and boost activity as consumer demand for EVs stalls, and more buyers turn to the used market.
‘Significant barriers, such as a lack of charging infrastructure, continue to hamper progress towards government targets, and we have seen manufacturers backtrack on their electrification plans and halt production as a result.
‘Following Labour’s decision to revert back to the original 2035 new petrol and diesel ban, many will now turn their attention to the Autumn Budget, in the hope that measures are introduced to drive the shift to EVs.’
Lisa Watson, director of sales at Close Brothers Motor Finance
