Analysis of UK New Car Registrations in June 2024: Growth Continues but Challenges Loom

The UK automotive market continues to show signs of stability, with new-car registrations increasing for the 23rd consecutive month in June. However, the growth rate has slowed down to just 1.1%, marking the third consecutive month of less than 2% improvement. This trend is driven by electrified vehicles and fleet sales, while private sales and internal-combustion engine deliveries have decreased.

The recent general election in the UK has added a layer of uncertainty to the automotive market, especially regarding the potential reinstatement of the ban on the sale of new internal-combustion engine vehicles by 2030. The outcome of this decision could have a significant impact on the industry, with the Society of Motor Manufacturers and Traders (SMMT) calling for incentives to drive the uptake of battery-electric vehicles (BEVs).

Despite the overall slowdown in the market, electrified vehicles are leading the way in terms of growth. Full hybrids, plug-in hybrids, and BEVs all saw increases in registrations in June, with BEVs maintaining their position as the second-most-popular powertrain in the UK. However, the BEV market is facing challenges such as infrastructure limitations and negative media reporting.

The decline in petrol and diesel registrations further highlights the shift towards electrified vehicles in the UK market. The potential reintroduction of the 2030 ban on petrol and diesel vehicles by the new government could further accelerate this transition.

Overall, the UK automotive market is at a crossroads, with the industry eagerly awaiting clarity on future regulations and incentives to drive the transition towards zero-emission vehicles. The coming months will be crucial in determining the direction of the market and the opportunities and challenges that lie ahead.