- 272,610 new cars registered in September as market rises
21.0% in 14th consecutive month of growth.
- Fleets drive expansion during ‘new plate month’ while overall
private purchases add to uplift.
- Zero emission vehicle demand continues to grow, but industry
calls for private motorist support as consumer uptake of battery
electric cars declines.
The UK new car market grew 21.0% in September with 272,610
registrations in the month, according to the latest figures from
the Society of Motor Manufacturers and Traders (SMMT). The
14thconsecutive month of growth was also the second
busiest of the year after March, with the new number plate
delivering its traditional market surge despite a challenging
economic backdrop.
Growth continued to be driven by large fleets, which rose 40.8%
to 143,256 units to reach a market share of 52.5%. This
represents a market rebalancing after constrained supply in
2022 restricted deliveries to business and fleet customers.
Private consumer demand, meanwhile, also grew, up 5.8% to 122,944
units. As a result, the industry enjoyed its best September since
2020,1 although registrations remain -20.6% below
pre-pandemic levels.2
Electrified vehicle uptake continued to grow in the month, with
plug-in hybrid vehicles (PHEVs) up 50.9% to take a 6.8% market
share and hybrid electric vehicles (HEVs) up 30.7% to account for
13.9% of all registrations. Battery electric vehicles (BEVs),
meanwhile, recorded their 41st consecutive month of
growth – with 45,323 drivers making the switch, an 18.9% uplift.
Given this growth was less than the overall recorded by the
market, however, BEV market share slipped back slightly to 16.6%
from 16.9% a year ago.
BEV volume increases were driven entirely by fleet purchases,
which rose by 50.6% as buyers were drawn to the advanced
technology, outstanding performance, reduced environmental impact
and compelling tax incentives. Conversely, private BEV
registrations fell -14.3% with less than one in 10 private new
car buyers opting for electric during the month. Such a decline
underlines the importance of providing these motorists with
purchase incentives and other mechanisms to stimulate demand.
Despite an end of sale date now aligned with other major markets,
the UK still has the most challenging zero emission vehicle (ZEV)
transition timeline. The recently published Zero Emission Vehicle
Mandate requires ZEVs to comprise half of each manufacturer’s new
registrations within five years, and 80% by 2030. Achieving this
will depend on private buyers making the transition, along with
business and fleet customers. However, unlike in the other major
markets working towards a 2035 end of sale date, UK private
motorists have no purchase incentive to encourage them to invest
in electric mobility.3
Mike Hawes, SMMT Chief Executive, said, “A
bumper September means the new car market remains strong despite
economic challenges. However, with tougher EV targets for
manufacturers coming into force next year, we need to accelerate
the transition, encouraging all motorists to make the switch.
This means adding carrots to the stick – creating private
purchase incentives aligned with business benefits, equalising
on-street charging VAT with off-street domestic rates and
mandating chargepoint rollout in line with how electric vehicle
sales are now to be dictated. The forthcoming Autumn
Statement is the perfect opportunity to create the conditions
that will deliver the zero emission mobility essential to our
shared net zero ambition.”
