Decline in Private New Car Purchases Continues for Ninth Month

The automotive industry is facing some interesting challenges as we head into the second half of the year. While the overall new car market is showing signs of growth, there are some concerning trends, particularly when it comes to purchases by private buyers.

According to the Society of Motor Manufacturers and Traders, purchases of new cars by private consumers declined for a ninth consecutive month in June. This is a significant drop of 15.3% compared to the same month last year. However, the overall new car market saw growth, mainly driven by an increase in purchases for fleets owned or leased by businesses or other organizations.

One of the standout performers in June was the Kia Sportage, which was the top-selling car in the UK. Other brands like Volkswagen and MG also saw positive growth in sales. However, it wasn’t all good news for every manufacturer, as Jaguar saw a drop in sales while Land Rover experienced an increase.

The market share of pure battery electric new cars is also on the rise, reaching 16.6% so far this year. This is a positive sign for the industry as it moves towards a more sustainable future. However, there are still challenges to overcome, particularly when it comes to making electric vehicles more affordable for private buyers.

Industry experts and leaders are calling for urgent measures to reignite private buyer interest in electric vehicles. With average new car prices on the rise, cost is becoming a significant barrier for many consumers. Manufacturers are offering discounts, but they may not be enough to keep pace with the increasing prices.

As we look ahead to the future of the automotive industry, it’s clear that there are both opportunities and challenges to navigate. The next government will play a crucial role in shaping the market and driving the transition towards zero-emission vehicles. With the right policies in place, we can create a more sustainable and vibrant automotive sector for years to come.