Car registrations rise 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 continuous growth in the industry. Car manufacturers have benefited from improving component supply chains, contributing to this positive trend. July 2021 saw the best performance since 2020 when dealers reopened after months of lockdown.

The growth in the new car market was primarily driven by company registrations. Large fleets saw a significant uptake, with an increase of 61.9% to 80,961 units. Business registrations also rose by 28.7% to 2,915 new vehicles. Private demand remained stable, with a slight increase of 0.3% to 60,045 units. The Ford Puma emerged as the best-selling car in July and continues to be the most popular car of the year so far.

Electric cars, including hybrids, plug-in hybrids, and battery electric vehicles (BEVs), accounted for 35.4% of the market. Among these, BEVs showed the largest gain, with registrations of pure-electric vehicles rising by 87.9% year-on-year. BEVs made up 16% of all registrations in July. The SMMT predicts that the number of BEV registrations will continue to increase, with a new BEV being registered every 60 seconds in July. 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 also predicts that BEVs will account for 23% of all registrations in 2024.

Despite the positive growth in the electric vehicle market, the SMMT emphasizes the need for support to encourage consumers to switch to electric cars. The organization calls for fiscal incentives and reassurance in purchasing electric vehicles. The SMMT also highlights the installation of new public chargers, with a record high of 3,056 new standard public chargers installed in the last quarter. This equates to one new charger for every 35 new cars fitted with a plug, an improvement compared to the previous year's ratio of one charger for every 53 new cars.

In terms of sales, the Ford Puma topped the charts in July with 4,124 registrations, 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 the Nissan Qashqai.

Industry experts have shared their thoughts on the market. Ian Plummer, commercial director at Auto Trader, notes that consumer interest in EVs remained flat in July, indicating a slowdown in sales growth. Steve Huntingford, editor of What Car?, also observes lower consumer demand for new EVs, particularly among private buyers. He attributes this to rising living costs and concerns about range and charging availability. Richard Peberdy, head of UK automotive at KPMG, mentions that consumers are "trading down" brands for their next car due to higher costs. However, overall consumer car sales have increased this year, with both electric and hybrid vehicles gaining market share.

Looking ahead, Lisa Watson, director of sales at Close Brothers Motor Finance, highlights the potential impact of London's Ultra Low Emission Zone and similar schemes in other UK cities on new registrations. Mark Oakley, director of AA Cars, emphasizes the need to accelerate the uptake of electric vehicles, despite the increasing supply and falling prices for used EVs. He suggests that lower prices may entice more drivers to consider a second-hand electric vehicle for their next car.

Overall, the new car market has shown resilience and growth, driven by company registrations and the increasing popularity of electric vehicles. The industry remains committed to meeting zero emission deadlines, and support from the government and improvements in charging infrastructure are crucial to encourage further adoption of electric cars.

FutureCar Staff