New Car Market Records Strongest February in 20 Years, Calls for Fairer EV Taxation
The new car market is revving up with its strongest February in 20 years, according to figures released by the Society of Motor Manufacturers and Traders (SMMT). Nearly 85,000 new cars hit the roads last month, marking a 14.0% increase compared to February 2023. This surge in registrations is the highest February total since 2004, when over 91,000 new cars were registered.
February is typically a slow month for car sales, as buyers wait for the new number plates to be introduced on March 1st. This anticipation often leads to a spike in purchases, driving up the numbers for the month.
Despite the overall growth in the market, the SMMT is calling for fairer taxation of electric vehicles (EVs) to boost private uptake. Currently, private buyers account for only 18.2% of new battery electric vehicles registered in the first two months of the year. Fleet sales are driving the increase in demand, largely due to tax incentives.
The SMMT is urging Chancellor Jeremy Hunt to take action in the upcoming Budget by halving VAT on new EV purchases, amending plans for vehicle excise duty on EVs, and reducing VAT on public charging to align with home charging costs.
Chief executive Mike Hawes emphasized the importance of greener growth in the market, stating that addressing the tax barriers for EVs could accelerate the transition to zero emissions and benefit the economy.
As the Zero Emission Vehicle (ZEV) mandate takes effect, manufacturers are offering substantial incentives to drive sales of electric vehicles. The mandate requires at least 22% of new cars sold by each manufacturer in the UK to be zero-emission, with the goal of reaching 100% by 2035.
With the push towards electric vehicles, industry experts are calling for more support for private car buyers to make the switch. Improved incentives and charging infrastructure could further drive sales and propel the market towards a more sustainable future.
The momentum in the new car market is undeniable, and with the right policies and incentives in place, the future looks bright for electric vehicles and the automotive industry as a whole. Stay tuned for more updates as the market continues to evolve and embrace greener technologies.