Analysis of UK New-Car Market Growth in April 2024: EVs Drive Growth Amidst Decline in ICE Sales

The UK new-car market saw a 21st consecutive month of growth in April, with electric vehicles (EVs) leading the charge. Despite a sluggish overall market, EVs and hybrids saw an increase in registrations, driving the growth for the month.

In April, EVs saw a significant increase in registrations, with battery-electric vehicles (BEVs) growing by 10.7% and plug-in hybrids (PHEVs) experiencing a 22.1% rise. The combined EV market saw a 14.1% growth, with EVs holding almost a quarter of the UK market share.

On the other hand, internal-combustion engine (ICE) models struggled, with petrol and diesel registrations declining. Petrol-powered cars recorded a 3.1% drop, while diesel registrations were 25.3% lower than the previous year. Full hybrids (HEVs) saw an increase in registrations, but it was the performance of EVs that kept the market in overall growth.

The fleet sector outperformed private registrations in April, with fleet registrations rising by 18.5%. Private buyer uptake fell by 17.7%, likely due to the cost-of-living crisis impacting consumer spending. The average age of a passenger car in the UK has increased to nine years, reflecting a trend of drivers holding onto their vehicles for longer.

Despite the growth in EV registrations, there are concerns about the lack of government incentives for private buyers to switch to zero-emission technology. The zero-emission vehicle (ZEV) mandate requires carmakers to have 22% of their sales as emission-free in 2024, but there are worries that targets may be missed due to low private uptake.

Overall, the UK new-car market is showing signs of growth, but the industry will need to address challenges such as increasing consumer demand for EVs and navigating the transition away from traditional ICE models. The future of the market will depend on how well these challenges are addressed and how the industry adapts to changing consumer preferences.