THE UK new car market fell -1.3% in November, with 156,621 models registered, according to figures from the Society of Motor Manufacturers and Traders (SMMT).
This maintains the downward trend for new car registrations throughout 2019, as multiple factors, including weak business and consumer confidence, economic uncertainty and confusion over diesel and clean air zones, combined to affect demand.
In November, the decline was driven primarily by weak private demand, registrations down -6.1%, while the business market also fell, down -3.2%, but fleet registrations fared better, up 2.8%.
For the second consecutive month, total alternatively fuelled vehicle (AFV) registrations reached a record market share, with more than one in 10 cars joining UK roads either hybrid, plug-in hybrid or pure electric – equivalent to 16,052 cars.
Demand for the latest battery electric cars surged by 228.8%, with 4,652 registered, while the markets for plug-in hybrids and hybrids also rose by 34.8% and 15.0% respectively. Elsewhere, petrol grew 2.0%, taking the lion’s share of all registrations (62.2%), as diesel fell -27.2%.
Year-to-date, the overall UK new car market is down -2.7%, with 2.2 million cars registered, in line with current industry forecasts.
Mike Hawes, SMMT Chief Executive, said, “These are challenging times for the UK new car market, with another fall in November reflecting the current climate of uncertainty. It’s good news, however, to see registrations of electrified cars surging again, and 2020 will see manufacturers introduce plenty of new, exciting models to give buyers even more choice.
“Nevertheless, there is still a long way to go for these vehicles to become mainstream and, to grow uptake further, we need fiscal incentives, investment in charging infrastructure and a more confident consumer.”
Michael Woodward, UK automotive lead, Deloitte, said that after significant investment in the technology by manufacturers, the growth of BEVs is welcomed in the industry.
“Demand for BEVs is also expected to accelerate when 0% company can tax rates on zero-emission vehicles are likely introduced in April 2020.
However, this level of growth presents a number of challenges as we enter a new decade. Not only is sugnificant investment required in the UK’s charging infrastructure, but as BEVs continue to grow, the long term implications for tax revenues are unclear.”
Jon Lawes, Managing Director, Hitachi Capital Vehicle Solutions said that with alternatively fuelled vehicles now making up over 10% of new registrations, this could be a real tipping point for the industry.
He added: “The latest figures prove that consumers are becoming increasingly confident in the options that electric vehicle manufacturers are providing, and this is backed up by our recent research, with 62% of consumers supporting the move towards electric vehicles.
“We expect this to increase as we see more models entering the market next year, with manufacturers continuing to remove barriers to adoption.
“The challenge now is for our future Government to ensure that we have the infrastructure in place to support this transition, providing a clear roadmap of investment to give confidence to consumers and business.”
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