UK New Car Registrations Grow for the 21st Consecutive Month in April
The UK new car market continues to show resilience and growth, with new car registrations increasing for the 21st consecutive month in April. According to the latest data from the Society of Motor Manufacturers and Traders (SMMT), new car registrations rose by 1.0% to reach 134,274 units, making it the best April since 2021.
Fleet registrations were the main driver of growth, increasing by 18.5% to account for more than six in 10 of all new cars registered in April. Private buyer uptake, on the other hand, fell by -17.7%, highlighting the need for incentives to encourage individual consumers to switch to electric vehicles.
Speaking of electric vehicles, they continued to be the main drivers of market expansion, with Plug-in Hybrids (PHEVs) and Hybrid Electric Vehicles (HEVs) recording strong growth. Battery electric vehicle (BEV) registrations also saw an increase, thanks to compelling fiscal incentives for businesses. However, the lack of government incentives for private buyers remains a barrier to wider adoption.
To accelerate the transition to electric vehicles, industry experts are calling for government action, including temporarily halving VAT on new BEV purchases and altering Vehicle Excise Duty thresholds for EVs. Infrastructure improvements, such as nationwide chargepoint installation, are also crucial to inspire consumer confidence in electric vehicles.
Despite the overall growth in the new car market, there is a diminishing share for BEVs, highlighting the need for stronger consumer demand. Manufacturers and industry experts are urging the government to provide incentives and support to help sustain consumer confidence and drive the transition to a more sustainable future of transport.
In conclusion, while the UK new car market is showing positive signs of growth, there is still work to be done to encourage wider adoption of electric vehicles. Government support, infrastructure improvements, and industry collaboration are key to driving the market growth needed to achieve Britain’s net zero ambition.