New Car Sales Rise in April for the 21st Consecutive Month
The automotive industry continues to show resilience and growth, with new car sales rising for the 21st consecutive month in April. Despite only a modest 1.0% increase compared to last year, the market saw a total of 134,274 units sold, making it the best April since 2021.
Fleet registrations were the main drivers of this growth, accounting for more than six in 10 new cars registered in April. Private sales, on the other hand, saw a decline of 17.7%, highlighting the need for incentives to encourage individual buyers to make the switch to electric vehicles.
Speaking of electrified vehicles, plug-in hybrids (PHEVs) and hybrid-electric vehicles (HEVs) saw significant growth in April, with PHEVs making up 7.8% of the market and HEVs comprising 13.1% of demand. Battery-electric vehicles (BEVs) also saw an increase in registrations, thanks to fiscal incentives for businesses.
However, the lack of government incentives for private buyers remains a barrier to wider adoption of electric vehicles. The Society of Motor Manufacturers and Traders (SMMT) is calling for measures such as temporarily halving VAT on new BEV purchases and altering vehicle excise duty thresholds to encourage more consumers to make the switch.
Infrastructure also remains a challenge, with a limited number of charging points available for the growing number of plug-in cars on the road. The SMMT anticipates a total of 393,000 BEV registrations this year but emphasizes the need for accelerated chargepoint rollout to inspire more consumers to go electric.
Despite the positive outlook for the automotive market, concerns remain about rising new car prices and the affordability of electric vehicles for many consumers. Manufacturers are urged to take action to incentivize consumers into new electric cars and achieve mass adoption.
Overall, the latest data on new car sales in April paints a picture of a growing market driven by fleet demand and electrified vehicles. However, challenges such as infrastructure, affordability, and consumer incentives need to be addressed to ensure a sustainable transition to electric vehicles and continued growth in the automotive industry.