- UK car sales expanded for the second consecutive month
- Marked the best June since 2019 with strong growth in battery electric car demand
- Society of Motor Manufacturers & Traders data released on June 24th
UK car sales have shown a significant growth in June, marking the best June since 2019. According to the Society of Motor Manufacturers & Traders (SMMT), the new car market grew 6.7 percent from a year ago to 191,316 units in June. This marks the second consecutive month of growth, with the sales figures exceeding those of the previous year.
- New petrol registrations fell 4.2 percent
- Diesel volumes gained only 0.2 percent
- Total electrified vehicle registrations achieved a 48.5 percent market share
The UK car market has shown a shift towards electrified vehicles, with total electrified vehicle registrations achieving a 48.5 percent market share. This is largely driven by the growing demand for battery electric vehicles, which rose by 39.1 percent to 24.8 percent of the market. Plugs-in hybrid electric vehicles also grew 28.8 percent, while the market for new hybrid electric vehicles fell 8.5 percent.
| Vehicle Type | Growth/Loss | Market Share |
|---|---|---|
| Battery Electric | 39.1% | 24.8% |
| Plug-in Hybrid Electric | 28.8% | 19.8% |
| New Hybrid Electric | 8.5% | 14.1% |
Data from SMMT also revealed that private retail demand gained 5.9 percent, while fleet demand grew 8.5 percent. However, registrations of commercial vehicles plunged 15.8 percent.
Growth Driven by Industry Support
Industry experts attribute the growth in UK car sales to substantial industry support. Manufacturers are using various channels, such as dealerships, online sales, and discounts, to drive demand. However, SMMT Chief Executive Mike Hawes notes that the current growth rate is still below mandated levels.
“Therefore, it is essential to sustain support for the industry to avoid underachieving our climate change ambitions. The government incentives play a significant role in driving the market transition, and without them, the UK’s climate change goals may be in jeopardy. We need to find the right balance between industry support and regulatory requirements to avoid complacency and ensure a successful transition to low-carbon mobility.”
Challenges and Opportunities Ahead
Despite the growth in UK car sales, there are still challenges to be addressed. The industry must continue to work towards reducing its carbon footprint, and the government must ensure that the incentives and regulations are effective in driving the market transition. The SMMT Chief Executive highlighted that the UK’s climate change ambitions will be under threat if the market growth slows down.
However, the growth in the battery electric vehicle segment presents both challenges and opportunities for the industry.
news is a contributor at AutosHype. We are committed to providing well-researched, accurate, and valuable content to our readers.
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