New car registrations down 5.8 per cent despite new model boost to EV electric vehicle demand

Private demand remains relatively steady but fleet and business purchases drop substantially

New car registrations down 5.8 per cent despite new model boost to EV electric vehicle demand

UK new car registrations declined by 5.8 per cent in August, according to figures published by the Society of Motor Manufacturers and Traders (SMMT).

Just over 87,000 vehicles were registered during what is traditionally the quietest month of the year for new car sales.

While registrations to private buyers held relatively steady, down by 699 units in the month, demand from businesses of all sizes was much more subdued, with 2,650 fewer new cars joining UK fleets, down 5.5 per cent on August 2019.

Demand also fell across all segments except superminis, with the biggest declines in demand seen in the mini (64.2 per cent) and specialist sports (41.9 per cent) categories.

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Zero emission-capable vehicles enjoyed a bumper August as a result of new models coming to market, with sales of plug-in hybrids increasing by 221.1 per cent, although they still only accounted for 1 in 30 sales.

Registrations of battery electric cars increased by 77.6 per cent in the month, accounting for 6.4 per cent.

However, they make up just 4.9 per cent of registrations year to date, up from 1.1 per cent in the same period last year – clearly illustrating the scale of the challenge ahead to reach the government target for EVs to comprise 70 per cent of new car sales by 2030.

The figures are released as the UK automotive industry calls for binding targets on charging infrastructure development and long-term commitments to incentivise the purchase of zero emission capable vehicles to accelerate demand.

In the past five years, the range of zero emission capable car models available in the UK has trebled to more than 80, with some 200 more in the pipeline over the coming years.

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For customer demand to keep pace, the SMMT says that at least 1.7 million new on-street charging points will need to be built by 2030, along with a long-term commitment from government to provide incentives for EV purchases.

Overall, registrations remain down by 39.7 per cent in the year to date, some 600,000 units behind this time in 2019, following coronavirus enforced lockdowns.

Mike Hawes, SMMT chief executive, said: “The decline is disappointing, following some brief optimism in July.

“However, given August is typically one the new car market’s quietest months, it’s important not to draw too many conclusions from these figures alone.

“With the all-important plate change month just around the corner, September is likely to provide a better barometer.

“As the nation takes steps to return to normality, protecting consumer confidence will be critical to driving a recovery.”

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