NEW car registrations in June grew 28.0% year-on-year to 186,128, according to the Society of Motor Manufacturers and Traders’ latest figures.
The monthly performance was again artificially lifted through comparison with June 2020, when the UK began to emerge from the first pandemic lockdown and showrooms in England opened up at the beginning of the month.
Compared with the previous decade average, however, monthly registrations were down -16.4%, while total registrations for Q2 2021 fell short of industry expectations by around 9,000 units partly as the ongoing global semiconductor shortage acted as a limiting factor on supply. As a result, overall registrations for the first half of the year are down -26.8%.
With the latest SMMT research showing electrification could create 40,000 new jobs by 2030, plug-in vehicles continued to increase market share.3 Combined, battery electric (BEVs) and plug-in hybrid vehicles (PHEVs) accounted for 17.2% of new vehicles hitting the road (31,981 units). BEVs accounted for more than one in 10 registrations (10.7%). PHEV uptake, however, continued to grow faster than BEV uptake for the third month running, following reductions to the Plug-in Car Grant in March.
All vehicle sizes – bar executive and multi-purpose – saw growth in June, with the strongest growth seen in the mini segment, which had been relatively weak for several months. Superminis were the most popular car class, accounting for 34.1% of registrations, followed by lower medium (26.8%) and dual purpose (24.5%).
While economic confidence continues to strengthen, with some independent forecasts for GDP growth reaching 8% in 2021, new registrations still remain adrift of pre-pandemic levels. Returning to the previous decade average of 2.3 million new car registrations per annum, and for that total to be electrically-driven, consumers need certainty about the future with long term government commitments to incentives, and confidence in the rollout of charging infrastructure nationwide.
Lucy Simpson, Head of EV Enablement at Centrica Business Solutions, said: “We’ve seen huge increases in the number of motorists opting for low carbon transport over the past 12 months, with in electric and hybrid models outperforming petrol and diesel vehicles. Today’s figures prove that trend shows no signs of slowing down, with registrations up 138% compared to the same period last year.
“The next step will be accelerating the rate of EV adoption even further, which is essential if the UK is to meet its net zero targets. Looking ahead, all eyes will now be on the government’s eagerly awaited Transport Decarbonisation Plan and how it will incentivise greater EV uptake ahead of the 2030 ban on ICE vehicle sales.
“Our research into business attitudes towards EVs revealed that range anxiety is still the chief concern for a third of UK firms. So, investment in a network of accessible charging infrastructure and guaranteeing the ‘right to plug’ for all those using electric vehicles will be key to promoting the mass adoption of low carbon transport.”
Sue Robinson, Chief Executive of the National Franchised Dealers Association, added: “Retailers are seeing robust consumer demand and continued outperformance of the UK retail new and used car market.
“Franchised dealers are optimistic for trading over the summer albeit there will likely be a tightness in supply of new cars ahead as the shortage of semiconductors is hitting car production.
“We expect the industry to continue to perform well, with consumer confidence remaining high and retailers providing a first-class service to their customers”.
James Fairclough, Chief Executive of AA Cars, said: “The economy is bouncing back well, and a growing sense of progress is building consumer confidence. As a result, more Britons are more willing to make big ticket purchases – like cars – that they had been holding off on until now.
“This willingness to spend is echoed by the Bank of England, which reports that for the first time since last summer, consumers are borrowing more than they are paying off1, with car finance forming a big part of the renewed lending activity. Our own figures bear this out, with car finance application volumes remaining strong.
“At the same time, a new car will be top of the wish lists of some drivers who managed to accumulate savings over the past year.
“Sales of EVs continue to climb, with drivers increasingly prioritising a car’s environmental credentials when making their choice.
“For many of those going electric for the first time, leasing rather than buying is proving very popular. We’re seeing increasing numbers of drivers opting for our Smart Lease product, where they can drive an EV for the first time, without any worries about maintenance, servicing or the future value of their car. They are also safe in the knowledge that if their personal circumstances change they can hand the car back without penalty.”
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