New Car Registrations in May Show Growth in Electric Vehicles and Fleet Sales
The latest data on new car registrations in the UK is in, and the numbers are painting an interesting picture of the automotive industry. According to the Society of Motor Manufacturers and Traders (SMMT), there were 26,031 new electric vehicles registered in May, marking a 6.2% increase from the same month last year. This growth in electric car registrations outpaced the overall new car market, which saw a 1.7% year-on-year increase to 147,678 vehicles.
One of the key drivers behind the surge in new electric car registrations is the demand from large fleets, which saw a 10.7% increase in uptake. On the other hand, registrations by private buyers declined by 2.0%. This trend highlights the importance of fleet sales in sustaining growth in the new car market.
Mike Hawes, the chief executive of SMMT, emphasized the role of large fleets in driving the growth of the new car market. He also pointed out the need for government support to ensure a faster and fairer transition to electric vehicles. Manufacturers have been offering attractive deals on electric models, but they cannot sustain this level of support indefinitely.
Land Rover and Jaguar, both part of Jaguar Land Rover (JLR), also saw positive growth in sales. Land Rover sales rose by 39.4% to 4,730 vehicles, while Jaguar sales increased by 1.6% to 1,363. JLR’s electric propulsion manufacturing center at the i54 in Wolverhampton is playing a crucial role in their success.
The top-selling brand for May was Volkswagen, with 13,503 vehicles sold, representing a 15.5% increase from May 2023. The Kia Sportage was the best-selling model with 4,202 sales in the month.
Despite the overall growth in new car registrations, there are challenges facing the industry. James Hosking, managing director of AA Cars, highlighted the cooling demand from private buyers and the impact of production disruptions on sales. However, he also noted that consumers still have ample options available in the market.
Sue Robinson, chief executive of the National Franchised Dealers Association, emphasized the importance of incentivizing private demand for new cars. She highlighted the need for the next government to focus on policies that encourage individual buyers to invest in new vehicles.
In conclusion, the latest data on new car registrations in the UK paints a complex picture of the automotive industry. While electric vehicles are driving growth, challenges remain in terms of private buyer demand and affordability. Government support and industry innovation will be crucial in navigating these challenges and ensuring a sustainable future for the new car market.