The UK’s new car market has experienced a significant surge in registrations, with a 6.7% increase in June, the best performance since 2019, according to data from the Society of Motor Manufacturers and Traders (SMMT). This increase in new car registrations marks a promising trend, but it is crucial to examine the broader context and the specific changes within the market to fully appreciate the implications of this growth.
According to the latest data, a total of 191,316 new cars were registered in June, a 3.5% increase compared to the same period last year. This represents a significant turnaround from the 17.9% decline experienced in the first half of the year compared to the pre-pandemic levels. While the overall market is still down, the June performance highlights a positive trend.
Electric vehicles (EVs) were a standout performer in June, with 47,354 units registered, representing a 39.1% increase compared to the same period last year. This growth is attributed to sustained support from the industry, with manufacturers using various channels and offering unsustainable discounts to drive sales. However, Mike Hawes, SMMT chief executive, cautioned that this growth is still below mandated levels, emphasizing the need for government incentives to accelerate the transition towards a more sustainable market.
In contrast, the registration of new petrol cars fell by 4.2%, while diesel vehicles remained largely flat, with a small 0.2% increase. The registration of plug-in hybrid vehicles grew 28.2%, and those of regular hybrids fell by 8.5%. These trends suggest that the market is evolving, but the sector’s reliance on traditional fuel types remains a concern.
Mike Hawes’s comments highlight the importance of addressing the sustainability of the new car market. He stated: “A second consecutive month of growth for the new car market is good news, as is the positive performance of EVs. That EV growth, however, is still being driven by substantial industry support with manufacturers using every channel and unsustainable discounting to drive activity, yet it remains below mandated levels.”
Hawes further emphasized the need for government incentives to accelerate the transition towards a more sustainable market. He noted: “As we have seen in other countries, government incentives can supercharge the market transition, without which the climate change ambitions we all share will be under threat.”
Industry Trends and Challenges
- Electric vehicle growth: 39.1% increase in June, with 47,354 units registered.
- Registration of petrol cars fell by 4.2%.
- Registration of diesel vehicles remained largely flat, with a small 0.2% increase.
- Registration of plug-in hybrid vehicles grew 28.2%.
- Registration of regular hybrids fell by 8.5%.
Market Evolution and Sustainability
- Electric Vehicle (EV) growth: 39.1% increase in June, with 47,354 units registered.
- Petrol car registrations: 4.2% decrease in June.
- Diesel vehicle registrations: 0.2% increase in June.
- Plug-in hybrid vehicle growth: 28.2% increase in June.
- Regular hybrid registrations: 8.5% decrease in June.
| Month | Registration | Change |
| June | 191,316 | 3.5% |
| Pre-pandemic levels | 234,191 | 17.9% |
“I have no doubt that the automotive industry will find a way to meet the climate change ambitions of 2050, but it will take sustained government support and a fundamental shift in consumer behavior.”
Mike Hawes’s assertion that the automotive industry will find a way to meet the climate change ambitions of 2050 highlights the importance of addressing the sustainability of the new car market.