Car registrations increase by over 28% in July, marking a year of sales growth

author: FutureCar Staff    

The new car market has experienced a year of growth, with registrations increasing again in July. According to the Society of Motor Manufacturers and Traders (SMMT), new car registrations in July were up by 28.3% compared to the same month last year. This marks the 12th consecutive monthly year-on-year increase, indicating a year of continuous growth. Carmakers have benefited from improved component supply chains, contributing to this positive trend. July 2021 saw the best performance since 2020 when dealers reopened after lockdown.

The growth in registrations was primarily driven by company registrations, with large fleets experiencing a 61.9% increase to 80,961 units and business registrations rising by 28.7% to 2,915 new vehicles. Private demand remained stable, with an increase of 0.3% to 60,045 units. The Ford Puma was the best-selling car in July and has maintained its position as the most popular car of the year so far.

Electrified cars, including hybrids, plug-in hybrids, and battery electric vehicles (BEVs), accounted for 35.4% of the market. Among them, BEVs saw the largest gain, with a year-on-year increase of 87.9%. BEVs made up 16% of all registrations in July. The SMMT reported that a new BEV was registered every 60 seconds in July, and this figure is expected to decrease to every 50 seconds by the end of the year and every 40 seconds by the end of 2024. The SMMT predicts that BEVs will make up 23% of all registrations in 2024.

The SMMT emphasized the importance of providing support to consumers switching to electric cars. They called for fiscal incentives and reassurance to facilitate this transition. In terms of charging infrastructure, there were positive signs as a record high of 3,056 new standard public chargers were installed in the last quarter, equating to one new charger for every 35 new cars fitted with a plug. This represents an improvement from the ratio of one charger for every 53 new cars in the same quarter last year.

In terms of sales rankings, the Ford Puma topped the charts in July with 4,124 registrations. It was followed by the Kia Sportage, Nissan Qashqai, Vauxhall Mokka, and Hyundai Tucson. The Puma also maintained its lead in the year-to-date chart, with 26,889 registrations. The Vauxhall Corsa and Nissan Qashqai secured the second and third positions, respectively.

SMMT chief Mike Hawes commented on the figures, expressing the industry's commitment to meeting the UK's zero emission deadlines and highlighting the growing choice and innovation in the market. He stressed the need for incentives to make electric vehicles affordable and practical for all drivers across the country.

Various industry experts provided their insights on the figures. Ian Plummer, commercial director at Auto Trader, noted that consumer interest in EVs remained flat in July. Steve Huntingford, editor of What Car?, mentioned lower consumer demand for new EVs, particularly among private buyers, due to rising costs and concerns about range and charging availability. Richard Peberdy, head of UK automotive at KPMG, highlighted that some consumers are "trading down" brands for their next car but overall consumer car sales are up, including electric and hybrid vehicles. Lisa Watson, director of sales at Close Brothers Motor Finance, speculated on the potential impact of London's Ultra Low Emission Zone and similar schemes on new registrations. Mark Oakley, director of AA Cars, emphasized the need to accelerate the uptake of EVs and mentioned falling prices for used EVs as a potential incentive for drivers.

FutureCar Staff