Britons are turning their backs on battery cars and looking at hybrids, according to the latest July car registrations, as Robin Roberts (and WheelsWithinWales) reports…
Now concern is mounting among car-makers that they will be hit with big penalties for failing to hit UK Government mandated 22% of BEV sales this year.
Manufacturers and dealers are likely to be offering incredible leasing and HP deals to businesses and private buyers to move more electric cars and avoid the penalties of thousands of pounds for every model which is not BEV powered. Next month is another plate change to the 74 prefix and incentives could be added on top of lower finance charges as the Bank of England interest rate went down this week.
July signals a twenty-fourth month of consecutive growth for the new car market, reaching an impressive milestone of two full years as we move into the second half of the year” said Sue Robinson, Chief Executive of the National Franchised Dealers Association.
Commenting on the latest SMMT new car registration figures, she said, “Private demand continues to trail behind fleet, highlighting the urgent need to restimulate the private electric market and an important consideration for the new government.
It is encouraging to witness another month of continuous growth in the electric vehicle market. However, the overall market share of electric vehicles, now at 16.8%, still falls short of the 22% required by the Zero-Emission Vehicle Mandate. This is an important consideration for the new government, particularly as they aim to reinstate the 2030 phase-out date of ICE vehicles.”
Volkswagen dominated last month, accounting for almost one-in-ten registrations, well ahead of BMW 6.7% with Kia third on 6.62% while traditional leader Ford has seen sales collapse over 30% and they are registering a little over half of VW’s total as the American owned business goes through substantial model changes and a move out of the family hatchback sector.
In July, a total of 147,517 new cars were registered, an increase of 2.5% from the same period last year. Sales to private buyers decreased by -11.1%; fleet registrations were up by 13.0%.
Battery electric vehicles (BEVs) experienced an increase, up 18.8% to 27,335 units. Plug-in hybrid (PHEVs) registrations increased by 12.4% to 13,149 units, and hybrids (HEVs) followed with growth of 31.4% to 21,446 units. In 2024, 194,431 new BEVs have been registered so far, compared to 175,978 units at the same point last year, representing a 10.5% increase.
With sales of electric growing, diesel fell from 11,148 units to 8,708 units (-21.9%), and notably petrol also fell from 81,740 units to 76,879 units (-5.9%).
NFDA is engaging with Parliamentarians on various critical industry issues. With the Budget now scheduled for October, we will continue to advocate for our members and provide ongoing updates.”
The SMMT said, “With zero emission vehicles mandated to comprise a minimum 22% of each brand’s new car registrations over the full year, the pace of transition needs to increase significantly.
The latest industry outlook, however, suggests that such a surge is looking increasingly unlikely given the current market conditions. While the outlook anticipates overall market growth in 2024, expectations have been revised downwards since April, with 1,968 million new car registrations now forecast by the end of the year.
The anticipated BEV share of the market has also been revised downwards to 18.5% from the 19.8% expected in April. Last week’s interest rate cut was already ‘priced in’ to the latest outlook but further cuts would be welcome, helping reduce the costs of finance and making new car purchases more accessible to more consumers.”
UK Best Sellers
Kia Sportage
Nissan Qashqai
Ford Puma
Volvo XC40
VW Golf
Hyundai Tucson
VW T-Roc
Nissan Juke
VW Polo
MG HS