Fleet and Business Registrations Dominate UK New Car Market in April
The latest data from the Society of Motor Manufacturers and Traders (SMMT) reveals that fleet and business registrations continued to dominate new car registrations in April. With 83,826 units registered in the month, this marks a 16% increase from the previous year. Fleet and business registrations now account for a 62% market share, showcasing the strong demand in this sector.
Overall, the UK new car market saw a modest 1% growth in April, reaching 134,274 units. This growth was primarily driven by electrified vehicles, with plug-in hybrids (PHEVs) and hybrid electric vehicles (HEVs) recording significant increases in market share. Battery electric vehicles (BEVs) also saw a rise in registrations, although consumer uptake fell by 21.9%.
Despite the positive growth in the market, there are concerns about the lack of government incentives for private buyers to switch to electric vehicles. The SMMT highlights the need for tax incentives and support for the EV market to accelerate the transition to zero-emission vehicles. Suggestions include temporarily halving VAT on new BEV purchases and altering Vehicle Excise Duty thresholds for EVs.
The SMMT revised its market outlook for 2024, anticipating a 4.2% increase in new car registrations. However, BEV volumes have been revised downwards, falling short of the government’s target under the ZEV mandate. Industry experts emphasize the importance of government support in driving consumer confidence and market growth for EVs.
Despite challenges in the consumer market, fleet demand remains strong, with companies continuing to invest in electrified vehicles. However, there is a call for policymakers to focus on boosting consumer accessibility and providing financial incentives to encourage private buyers to make the switch to eco-friendly vehicles.
In conclusion, the latest data highlights the ongoing shift towards electrified vehicles in the UK new car market. While fleet and business registrations are driving growth, there is a need for government support to stimulate consumer demand and accelerate the transition to zero-emission vehicles. By implementing incentives and addressing barriers to adoption, the UK can maintain its positive trajectory towards a more sustainable automotive sector.