UK New Car Market Grows 1.2 Per Cent After Five Months of Drop
The new car registrations see an increase of 1.2 per cent after five months of fall.
The SMMT data shows 68,858 new car registrations in August – the first rise since February.
The growth comes at a time when most buyers abstain from buying because they want a new number plate in September.
However, regardless of this boom, the SMMT says, August sales are still the lowest for the month bar 2021 ever since August 2013's 65,937 because the supply chain issues are still uncontrolled.
Large fleet registrations declined by 1.6 per cent, which was counterbalanced by a 3.2 per cent growth in sales to private buyers. Business vehicle purchases witnessed the most significant jump of 26.6 per cent, but the sector volume is insignificant.
The rising new car registrations were mainly due to battery-electric vehicles (BEVs), with a 35.4 per cent jump in numbers and a 14.5 per cent market cut.
However, BEV sales are slower, with a year-to-date rise of 48.8 per cent. During the first quarter of this year, electric vehicle registrations went up by 101.9 per cent.
Source: SMMT
Plug-in hybrid (PHEV) sales went down by 23.1 per cent. In other words, PHEVs represented one in five (20.2 per cent) of last month’s registrations. Hybrid-electric vehicle registrations remained reasonably steady, dropping by 0.7 per cent.
The UK's most famous segment was Supermini, with an enhanced market share of 34 per cent, with an increase of 7.4 per cent compared to August last year.
MPVs, posh saloons, and lower mid-size vehicles also witnessed an increase of 31 per cent, 1.5 per cent, and 1.3 per cent, correspondingly, whereas registrations of all other vehicle classes dropped.
Year to date, vehicle enrolments went down by 10.7 per cent compared to 2021 at 983,099 units – over a third (35.3 per cent) drop compared to the first eight months of pre-pandemic 2019, which remained at 1,519,016.
It presents the level of challenge we have in terms of revival.
Mike Hawes, SMMT chief executive, said August’s rise is welcoming yet borderline in a low-volume month.
“Spiralling energy costs and inflation on top of sustained supply chain challenges are piling even more pressure on the automotive industry’s post-pandemic recovery, and we urgently need the new prime minister to tackle these challenges and restore confidence and sustainable growth,” he added.
“With September traditionally a bumper time for new car uptake, the next month will be the true barometer of an industry recovery as it accelerates the transition to zero-emission mobility despite the myriad challenges.”
The best three sellers of the August 2022 included VW Polo (1,902), Ford Puma (1,875), and the Hyundai Tucson (1,739).
Source: SMMT
Every industry expert has given their opinion about this growth. Mark Carpenter, CEO of Motorpoint, says the momentum needs to continue.
Alex Buttler, the co-founder of Motorway, sees EV sales as the silver lining despite the limited output and availability of new vehicles.
Ian Plummer, commercial director of Auto Trader, says the supply chain issue is still the main factor holding back sales.
Source: Car Dealer Magazine