UK Automotive Industry Sees 1.7% Increase in New Car Registrations in May 2024

The UK automotive industry is revving up with a 1.7% increase in new car registrations last month, marking the 22nd consecutive month of growth. According to the latest data from the Society of Motor Manufacturers and Traders (SMMT), a total of 147,678 units were registered, encompassing private, fleet, and business vehicles.

While the overall market saw a slight decline compared to pre-pandemic levels, the growth in new car registrations has been predominantly driven by fleets and businesses, which saw increases of 14.0% and 9.5%, respectively. This surge has helped offset a decrease in private retail registrations.

One of the most notable trends in the market is the rising demand for electrified vehicles. Plug-in hybrid electric vehicles (PHEVs) recorded the highest growth among all powertrains, with a 31.5% increase in registrations. Hybrid EVs also saw a rise in demand, maintaining their position as the third most popular fuel type. Battery electric vehicles (BEVs) outpaced the overall market, with a 6.2% increase in registrations.

Despite the positive figures, the current trajectory falls short of the targets set by the government’s Vehicle Emissions Trading Scheme. SMMT chief executive Mike Hawes emphasized the need for government support to accelerate the transition to zero-emission vehicles. SMMT proposes measures such as temporarily halving VAT on new BEV purchases and reducing VAT on public charging to stimulate demand and put more EVs on the road.

The UK automotive industry’s growth in new car registrations is a promising sign of the increasing popularity of electrified vehicles. With the right support and incentives, the industry could see even greater growth in the coming years.