The UK new car market declined slightly in November as new registrations fell by -1.6% to 151,154 units, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).
The sixth fall this year was driven by a -5.5% decline in overall demand from private buyers. Fleet uptake edged up 0.2%, while business buyer volumes – traditionally a very small part of the market – rose 18.0%.
Battery electric vehicle (BEV) uptake, supported by the Electric Car Grant, rose to reach 26.4% share of the market, just ahead of the 25.1% achieved in November last year. However, with volumes rising just 3.6%, this represented the weakest month for BEV growth in almost two years.1 Hybrid electric vehicle (HEV) uptake rose slightly by 1.3% to comprise 13.1% of the market. The fastest growth was recorded by plug-in hybrids, up 14.8% and accounting for 11.9% of registrations.
As a result, electrified vehicles achieved a record market share for the year of 51.4%, with petrol- and diesel-powered vehicles recording their third consecutive month as a minority of registrations. Although BEV registrations are now at record volumes – with 426,209 joining the road in the last 11 months – their 22.7% year-to-date market share still falls significantly short of the 28% annual government target.
While last week’s Budget provided some essential support to accelerate the transition to electric vehicles – including additional funding to extend the Electric Car Grant, an uplift in the threshold from which EVs would be subject to the VED Expensive Car Supplement, and more money for infrastructure rollout – plans to introduce a “pence per mile” electric Vehicle Excise Duty (eVED) will endanger the UK’s net zero transition. Current proposals will quash demand right when it is needed to rise steeply, leaving the market even further adrift of government goals.
[source: SMMT]Mike Hawes, SMMT Chief Executive said:
Even in a fragile market, zero emission vehicle uptake continues to rise, which is exactly what we need. But the weakest growth for almost two years – ahead of government announcing a new tax on EVs – should be seen as a wake-up call that sustained increase in demand for EVs cannot be taken for granted. We should be taking every opportunity to encourage drivers to make the switch, not punishing them for doing so, else the ambitions of government and industry will be thwarted.
