Car Sales up 1% in September, highest since COVID
September's new plate day saw the UK new car market increase by 1% to 275,239 units, as per new statistics from the SMMT.
This outcome signifies the strongest September for the industry since 2020, though it still trails 19.8% behind the same timeframe in 2019—the last year before Covid impacted results.
Experts indicate that this notable growth was primarily fueled by enhanced fleet purchases, which climbed by 3.7% to 149,095 units, capturing a market share of 54.2%.
Conversely, private consumer demand dipped by 1.8% to 120,272 units, securing a 43.7% market share, while the smaller business segment accounted for only 5,872 registrations, reflecting a year-on-year decline of 8.4%.
Regarding powertrains, electric vehicles (EVs) achieved a record month with 56,387 units registered, signifying a rise of 24.4%.
Similar to the broader market, EV growth was propelled by fleet sales, with deliveries surging 36.8% to represent an astounding 75.9% of registrations.
Private EV demand also saw an uptick of 3.6%, largely due to ‘unparalleled producer reduction.’
However, the SMMT asserts that this outcome is ‘not sufficient’ and acknowledged that overall EV demand is ‘barely shifting.’
Year-to-date, the market share for EVs has stubbornly remained low at 17.8% and is only anticipated to reach 18.5% by the end of the year. Private EV demand year-to-date is also down by 6.3%.
In response, the SMMT has collaborated with several brands to draft an open letter to the government, advocating for enhanced incentives for new EVs.
Beyond fully electric vehicles, the adoption of plug-in hybrids grew at a faster pace than any other fuel type this month, rising 32.1% to achieve an 8.9% market share.
Hybrid electric vehicle registrations climbed 2.6%, elevating market share to 14.2%, while petrol and diesel registrations saw declines of 9.3% and 7.1%, respectively.
However, traditional engines remained popular, with 56.4% of sales in September. In terms of models, the Kia Sportage was the best-seller for September, with 7,482 registrations, while the Ford Puma continues to lead for the year so far with 38,944.
Mike Hawes, SMMT chief executive, remarked: ‘September’s record EV performance is encouraging, but upon closer inspection, serious concerns arise as the market isn't expanding quickly enough to meet mandated targets.
‘Even with manufacturers investing billions in product and market support—efforts the industry cannot maintain indefinitely—the ongoing market weakness jeopardizes environmental goals and threatens future investments.
‘While we understand the constraints on public finances, the Chancellor must leverage the upcoming Budget to introduce bold measures for consumer support and infrastructure to realign the transition, alongside the economic growth and environmental benefits we all seek.’
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Source and Image: CarDealerMagazine