According to the latest figures from the
Society of Motor Manufacturers and Traders (SMMT), the UK new car market fell for the second time this year, down by 6% in October to 144,288 new registrations, with declines recorded across all buyer types. Fleet purchases fell for the second time this year, down 1.7%, and the business market down 12.8%; and with private purchases down 11.8%, just 38.8% of new cars registered in the first 10 months have gone directly to private buyers.
The fall was driven by falls in petrol and diesel vehicle deliveries of 14.2% and 20.5% respectively; the uptake of hybrid electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs) also fell, down 1.6% and 3.2%. Battery electric vehicles (BEVs) were the only type to record growth, with a ‘raft of new models’ driving the strongest growth this year, up 24.5% to reach a 20.7% share of the market.
The SMMT said: “UK new-car buyers now have more than 125 different BEV models to choose from, an increase of 38% over the last 10 months; and while the average BEV has a higher upfront cost than an ICE (internal combustion engine) equivalent, widening choice and huge manufacturer discounting means that around one in five BEV models now has a lower purchase price than the average petrol or diesel car. This is especially the case for buyers able to take advantage of schemes such as salary sacrifice.
“However, while BEV market share is increasing, October’s decline in the total market is equivalent to a £350 million loss in turnover and highlights the challenge ahead, for while almost 300,000 new BEVs reached the road in the first 10 months of 2024, this represents 18.1% of the market — an increase on 2023, but still significantly short of the 22% target for this year and of the 28% that ‘must be achieve’ in 2025 under the Vehicle Emissions Trading Scheme.
“While the Budget extended existing business and fleet incentives for BEVs, the ‘Vehicle Excise Duty and Company Car Tax’ changes disincentivise low-carbon vehicle purchases and fleet renewal generally, risking a delay to the overall reduction in road transport emissions ... without Government support to match the manufacturers’ commitment, there must be an urgent review of the market’s performance and the regulatory mechanisms driving the transition.”
Mike Hawes, the SMMT’s chief executive, concluded: “Fleet renewal across the market remains the quickest way to decarbonise, so diminishing overall uptake is not good news for the economy, for investment, or for the environment. EVs already work for many people and businesses, but to shift the entire market at the pace demanded requires significant intervention on incentives, infrastructure and regulation.”