UK New Car Market Hits Half-Year Million Motors Milestone in 2024
The UK new car market is showing signs of growth, with new car registrations reaching 179,263 units in June, a 1.1% increase from the previous month. This milestone also marks the first time in five years that the market has surpassed the half-year million motors mark, with a total of 1,006,763 new cars registered so far in 2024.
One of the most notable trends in the market is the increasing popularity of battery electric cars, which recorded their highest monthly market share since December 2023. However, despite this growth, the uptake of battery electric cars in the year-to-date remains stable at 16.6%. Interestingly, fewer than one in five new battery electric cars are going to private buyers, highlighting the need for greater support from the government to incentivize consumer adoption.
The industry is calling on the next government to back consumers in their transition to zero-emission mobility. Suggestions include reinstating fiscal incentives for private consumers, such as halving VAT on battery electric vehicles for three years. This move could potentially put an additional 300,000 private battery electric vehicles on the road over the next three years, helping to accelerate the shift towards zero-emission vehicles.
In addition to fiscal incentives, the industry is also advocating for revisions to Vehicle Excise Duty plans to classify zero-emission vehicles as essential rather than luxury vehicles. This would help to remove barriers to adoption and encourage more consumers to choose zero-emission options.
Overall, the automotive industry is optimistic about the future of the new car market, but recognizes the challenges that lie ahead. By implementing the right policies and incentives, the next government has the opportunity to re-energize the market and facilitate a faster, fairer transition to zero-emission vehicles. With the support of policymakers and consumers alike, the UK can continue to make progress towards a more sustainable and environmentally friendly automotive sector.