The new car market grew 24.4% in August with 85,657 new vehicles registered.

According to the latest figures from the SMMT this means an increase of 16,799 units from August 2022.

Despite this improved performance, the market still remains -7.5% below pre-pandemic levels.¹  The increase was fuelled by a surge in registrations by large fleets, rising 58.4% to 51,951 units, while business registrations grew 39.4% to 1,635 units. Conversely, private demand softened by -8.1%, compared with a supply-constrained 2022 market.

Demand for electrified vehicles continued to grow, accounting for almost four in 10 (37.8%) new cars reaching the road.

More importantly, battery electric vehicle uptake grew by a whopping 72.3% to secure a 20.1% market share, an August record and the highest recorded since last December.

Plug-in hybrid uptake also rose significantly, by 70.0%, to account for 7.7% of new registrations. Hybrid volumes remained relatively stable with a 6.8% increase, comprising 10.0% of the market.

However, with less than four months to go until the expected introduction of a Zero Emission Vehicle Mandate, the industry still has no sight of the proposed regulation. The automotive sector is committed to Net Zero but the diminishing time threatens the ability of the market to move. Demand from both business and private consumers must be boosted still further if ambitions are to be met, but while businesses benefit from fiscal incentives to switch, there is no similar package for the private consumer market.

Notes:

1 August 2019 registrations: 92,573.