May Market Performance: Fleet and Business Sales Drive Growth, Private Retail Uptake Declines
The automotive industry has seen a mixed bag of results in the month of May, with some interesting trends emerging. According to recent data, a total of 147,678 units hit the road, marking the best May market performance since 2021. However, this figure is still down by 19.6% compared to 2019.
One of the most notable trends is the shift towards electrified vehicles. While deliveries of petrol and diesel cars declined, demand for electrified vehicles saw a significant increase. Plug-in hybrids (PHEVs) recorded the highest growth among all powertrains, with a 31.5% increase, reaching an eight percent market share. Hybrid vehicles (HEVs) also saw a rise of 9.6%, capturing 13.2% of the market.
Battery electric vehicles (BEVs) also saw a positive trend, with a 6.2% increase in registrations, taking a 17.6% market share. However, it is worth noting that the uptake of BEVs is primarily being driven by the fleet sector, with private retail uptake experiencing a slight decline.
The market performance has highlighted the need for the government to provide meaningful purchase incentives for private consumers. The Vehicle Emissions Trading Scheme mandates that 22% of each brand’s new vehicles sold this year must be zero-emission, a target that manufacturers are struggling to meet without additional support.
Mike Hawes, chief executive of SMMT, emphasized the importance of a faster and fairer transition towards electric vehicles, calling for the next government to provide incentives to drive consumer adoption. With a plethora of new electric models and attractive offers available, manufacturers are looking for government support to sustain the momentum.
As the automotive industry continues to evolve, it is clear that electrification is the way forward. Consumers have more options than ever before, and with the right incentives in place, the transition to electric vehicles can be accelerated. Stay tuned for more updates on the latest trends in the automotive industry.