THE UK new car market grew 23.5% in November to 142,889 registered units in the fourth consecutive month of year-on-year growth, according to new figures from the Society of Motor Manufacturers and Traders (SMMT).
The growth delivered the best total for November since 2019, with manufacturers continuing efforts to fulfil orders amid erratic global components supply. However, registrations in the month were still 8.8% below 2019 levels and, while further recovery is anticipated in 2023, global and domestic economic challenges mean that the market will remain below pre-pandemic levels.
Registrations by large fleets energised the market, up 45.4% compared with November last year. Demand from private buyers also grew, albeit by a more modest 2.7%. Business registrations more than doubled, meanwhile, up 112.2%, but remain a small fraction of the overall market.
Zero emission vehicle uptake continues to grow, with newly registered battery electric vehicles (BEVs) up 34.2% to represent more than one in five new cars (20.5%) – the largest monthly share of BEVs this year. Conversely, plug-in hybrid (PHEVs) registrations fell by 5.8%, making up 7.1% of the market.
As a result, some 39,558 new plug-ins were registered, representing more than one in four (27.7%) new cars joining UK roads in November. Hybrid electric vehicles (HEVs), meanwhile, rose by 66.9% to 11.3% of the market, driven particularly by fleet operators looking for flexibility and emissions reductions.
The most in-demand supermini and lower medium vehicle segments both grew by 21.5% and 20.5% respectively in November, while dual purpose vehicles increased by 21.8%. There was significant growth in luxury saloon and multi-purpose vehicles, up 87.3% and 288.6%, but these segments still remain a small section of the market.
As growth returns to the new car market, the car sector is poised to deliver an additional £8 billion for the UK economy in 2023, with an anticipated 15.4% market growth.2 UK Automotive is making rapid strides to deliver on its net zero targets, and further acceleration requires forward-thinking planning and collaboration from all stakeholders.
Measures that boost motorists’ confidence in EVs, including a fiscal framework that encourages EV adoption and targets to speed up the provision of charging infrastructure, will help to ensure uptake is in line with the UK’s green goals, particularly as the ambitious Zero Emission Vehicle Mandate comes into effect.
Mike Hawes, SMMT Chief Executive, said that recovery for the new car market is “within our grasp” and energised by EVs.
He added: “Urgent measures are required – not least a fair approach to driving EV adoption that recognises these vehicles remain more expensive, and measures to compel investment in a charging network.”
James Fairclough, Chief Executive at AA Cars added: “Four straight months of rising new vehicle registrations would be good at any time, but with Britain sliding into recession it feels all the more impressive.
“After a painfully slow start to the year – when the sector was hamstrung by supply shortages – sales are ending the year strongly, with drivers’ surging demand for Electric Vehicles leading the way. Pure EVs now account for well over one in four new cars sold in the UK.
“But the progress is all relative. Total sales so far this year are still 3.4% down on the Covid-impacted numbers recorded at this point in 2021, and well adrift from their pre-pandemic levels.
“The supply of new vehicles is finally improving, with the SMMT recently confirming that UK car manufacturing output jumped by 7.4% in October. But questions still remain about the durability of customer demand.
“Double-digit inflation is forcing households to spend an ever greater proportion of their income on keeping up with the cost of living and squeezing their ability – and willingness – to invest in big-ticket items like a brand new car.
“For drivers with a finite budget, leasing a new car is becoming increasingly attractive, as the fixed monthly payments offer certainty and can also include other motoring costs such as breakdown cover and vehicle tax.
“Meanwhile a steady stream of drivers are opting to buy their next car second-hand, rather than new.
“We’re seeing this shift play out on the AA Cars website, with many would-be buyers using our platform to shop for a good value used vehicle that’s available to drive away today.
“For drivers who want a new car on a budget, there are competitive used deals to be had, particularly for buyers who do their research and consider searching outside their local area.”
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