UK car market surges with 'recovery underway' thanks to huge 24 per cent sales jump
More than 85,000 new vehicles were registered last month
PA
New data has found that August saw the new car market grow by 24.4 per cent with 85,657 new vehicles registered with businesses and fleets investing heavily in new vehicles.
Battery electric vehicles made up 20 per cent of new car sales last month, marking the highest recorded market share since last December.
The figures, from the Society of Motor Manufacturers and Traders, reported that uptake of hybrids also remains strong, making up 10 per cent of the market.
Mike Hawes, SMMT Chief Executive, said: “With the automotive industry beginning a second year of growth, recovery is underway with EVs energising the market.
August saw the new car market grow by a strong 24.4 per cent
PA
“But with a new Zero Emission Vehicle Mandate due to come into force in less than 120 days, manufacturers still await the details. Businesses cannot plan on the basis of consultations, they need certainty.
“And now, more than ever, Government must match action to ambition, ensuring there are the incentives and infrastructure in place to convince drivers to make the switch.”
The data also shows how the Ford Puma is the best-selling car in August 2023 with 2,336 models registered, as well as the best-seller in the year-to-date with almost 30,000 registered.
Tesla sales are also surging, with the Model Y and Model 3 selling more than 4,000 vehicles in August combined.
The Model Y SUV is also the only electric vehicle on the best sellers of the year-to-date, placing in third with more than 24,000 registrations.
Ginny Buckley, founder and CEO of electrifying.com, said it was positive to see EV registrations continuing to increase, with one in five cars sold being electric.
However, she warned that some motorists may be forced down the path of more premium EVs like the Tesla Model 3 and Model Y.
She said: “Now is not the time to be leaving mainstream consumers behind; we need to be encouraging people to make the switch, which can be done not only by improving our public infrastructure, but also by introducing financial incentives, particularly for used electric cars.
“The used market will be key to us hitting our net zero targets in the coming years, which is why I would like to see the introduction of a subsidised used car loan to help consumers go electric.
“This will help to stimulate demand and even make finance on new cars more affordable by improving residual values.”
There are also concerns about how the UK Government will adapt to the impending rollout of the Zero Emission Vehicle mandate and what measures are being taken to ensure it will be a success.
Jamie Hamilton, automotive partner and head of electric vehicles at Deloitte, said: “New brands entering the market are helping to broaden the range of EV models now available in the UK market and, with the easing of supply chain issues, demand is being met at a faster rate.
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Electric cars sold more than 20 per cent of the market share last month
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“Looking ahead, the number of EVs should be in line with the new Zero Emission Vehicles mandate being introduced in January.
“However right now, there needs to be a faster rollout of EV charging points. Continued improvement in the underlying infrastructure will be crucial if growth is to keep up with the rising thresholds for subsequent years.”
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