UK New Car Market Grows 1.1% in June Driven by Fleet Demand, Consumer Take-Up Declines

The UK new car market saw a modest 1.1% growth in June, driven primarily by fleet and business demand, while private consumer uptake continued to decline. With fleet registrations driving the market, electric vehicle (EV) demand is also being fueled by the fleet sector. Battery electric vehicle (BEV) registrations rose in June, with BEVs now comprising 19.0% of all new vehicle registrations.

However, private consumer uptake of BEVs has softened, with fewer than one in five new BEVs going to private buyers. The overall market is up 6.0% year to date, thanks to a surge in fleet registrations. The Society of Motor Manufacturers and Traders (SMMT) has called on the next government to provide greater support to consumers on the journey to zero-emission mobility.

The SMMT is urging the next government to reinstate fiscal incentives for private consumers, including halving VAT on BEVs for three years and rethinking Vehicle Excise Duty changes. Deloitte has also emphasized the need to ramp up efforts to incentivize private consumers to switch to BEVs, as the market share for electric vehicles is still below the required 22% set out in the ZEV mandate.

Efforts to improve the charging infrastructure for EVs are also crucial. Deloitte’s survey shows that consumers are more likely to switch to an electric vehicle if they have access to off-street parking and charging facilities. Transport & Environment has called for leveling up the UK’s charging network and implementing targeted measures to support EV adoption.

Overall, the automotive industry is looking for stability and confidence from the next government regarding EV adoption deadlines and transition goals. With the UK heading to the polls, it’s essential for the election to provide clarity on these issues to support the growth of the EV market and the transition to zero-emission mobility.