Car registrations rise 28% in July, marking a year of sales growth

author: FutureCar Staff    

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

The growth in the market was primarily driven by company registrations, with large fleets experiencing a 61.9% increase and business registrations rising by 28.7%. Private demand remained stable, with a 0.3% increase. 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.

Electric vehicles (EVs) accounted for 35.4% of the market, with battery electric vehicles (BEVs) recording the largest gain. Registrations of pure-electric vehicles increased by 87.9% year-on-year, making up 16% of all registrations for the month. The SMMT predicts that by the end of 2024, a new BEV will be registered every 40 seconds. The organization also forecasts that BEVs will represent 23% of all registrations in 2024.

Despite the positive figures, the SMMT emphasizes the importance of providing support to consumers in their transition to electric cars. The organization calls for fiscal incentives and purchase reassurance to encourage the adoption of EVs. There have been positive signs in the last quarter, with a record high of 3,056 new standard public chargers installed. This equates to one new charger for every 35 new cars fitted with a plug, an improvement compared to the ratio of one charger for every 53 new cars in the same quarter last year.

In terms of sales, 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 Ford Puma also leads the year-to-date chart with 26,889 registrations, followed by the Vauxhall Corsa and Nissan Qashqai.

Industry experts have provided their insights on the figures. Ian Plummer, commercial director at Auto Trader, highlights that consumer interest in EVs was flat in July, indicating a slower growth rate than expected. Steve Huntingford, editor of What Car?, notes a lower demand for new EVs among private buyers due to rising living costs and concerns about range and charging availability. Richard Peberdy, head of UK automotive at KPMG, suggests that some consumers are trading down brands for their next car due to higher costs. Lisa Watson, director of sales at Close Brothers Motor Finance, speculates on the potential impact of London's Ultra Low Emission Zone and similar schemes on new registrations. Mark Oakley, director of AA Cars, highlights the rebound in UK car production and suggests that falling prices for used EVs may encourage more drivers to consider them.

Overall, the industry remains committed to meeting the UK's zero emission deadlines and calls for government support to make EVs affordable and practical for all drivers.

FutureCar Staff