New car market records sixth consecutive month of growth

Electrified vehicles continues to drive market

New car market records sixth consecutive month of growth

The UK new car market grew 14.7 per cent in January to reach 131,994 units, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).

It makes January 2023 the best start to the year since January 2020’s pre-Covid 149,279 units and marks the sixth successive month of expansion.

Hybrid electric vehicles (HEVs) comprised 14.4 per cent of new car registrations, increasing volumes by 40.6%.

Meanwhile, battery electric vehicle (BEV) registrations rose 19.8 per cent to reach 17,294 units, or 13.1 per cent of new registrations – slightly below the average recorded for 2022.1 Plug-in hybrid vehicles (PHEVs) recorded a 0.7 per cent rise, although their share fell to 6.9 per cent of new cars reaching the road.

As a result, one in five new cars registered in the month came with a plug.

It was also a strong month for large fleet registrations, which increased by 36.8 per cent to 69,540 units, while registrations by private buyers fell by -4.3 per cent to 59,639 units – reflecting some easing of supply and evidence of how shortages last year distorted market performance.

Registrations by businesses, the smallest segment at 2,815 units, rose by 45.6 per cent.

Plug-ins are anticipated to comprise of more than one in four new registrations this year, representing growth of 32.1 per cent or approximately 487,140 units, and almost a third (31 per cent) of the market in 2024 at 607,150 units.

Mike Hawes, SMMT Chief Executive, said: “The automotive industry is already delivering growth that bucks the national trend and is poised, with the right framework, to accelerate the decarbonisation of the UK economy.

“The industry and market are in transition, but fragile due to a challenging economic outlook, rising living costs and consumer anxiety over new technology.

“We look to a Budget that will reaffirm the commitment to net zero and provide measures that drive green growth for the sector and the nation.

“The strong start to the year is mirrored in the latest market outlook, which anticipates 1.79 million new car registrations in 2023, an 11.1 per cent increase on the past year but still well below 2019 levels.

“This also represents a -0.8 per cent reduction on October’s outlook, against a weak economic backdrop.

“However, a further 9.3 per cent increase is expected next year, with 1.96 million new cars expected to join the road in 2024.”

Have your say!

0 0

Lost Password

Please enter your username or email address. You will receive a link to create a new password via email.