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

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【Summary】New car registrations in the UK increased by over 28% in July, completing a full year of sales growth. This marks the 12th consecutive monthly year-on-year increase and the best July since 2020. Company registrations drove the growth, and electrified cars accounted for 35.4% of the market, with battery electric vehicles (BEVs) recording the largest gain. The Society of Motor Manufacturers and Traders (SMMT) called for more support to encourage consumers to switch to electric cars.

FutureCar Staff Aug 17, 2023 10:22 AM PT

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

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), new car registrations in July were up by 28.3% compared to the same month last year. This marked the 12th consecutive monthly year-on-year increase, demonstrating a year of non-stop growth for 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, with large fleets experiencing a 61.9% increase and business registrations rising by 28.7%. Private demand remained stable with a slight increase of 0.3%. The Ford Puma was the best-selling car in July and continues to be the most popular car year-to-date. Electric cars, including hybrids, plug-in hybrids, and battery electric vehicles (BEVs), accounted for 35.4% of the market. Among these, BEVs recorded the largest gain, with a year-on-year increase of 87.9%. Pure-electric vehicles represented 16% of all registrations in July.

The SMMT highlighted the rapid growth of BEV registrations, stating that a new BEV was 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 predicts that BEVs will account for 23% of all registrations in 2024. However, the trade body emphasized the need for support to encourage consumers to switch to electric cars, including fiscal incentives and purchase reassurance.

The SMMT also reported 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, compared to one charger for every 53 new cars in the same quarter last year. Ford's Puma led the sales charts in July with 4,124 registrations, followed by the Kia Sportage, Nissan Qashqai, Vauxhall Mokka, and Hyundai's Tucson.

Industry experts have provided their insights on the market. Ian Plummer, commercial director at Auto Trader, noted that consumer interest in EVs remained flat in July based on Auto Trader advert views. Steve Huntingford, editor of What Car?, mentioned lower consumer 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, highlighted 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, discussed the potential impact of London's Ultra Low Emission Zone and similar schemes on new registrations. Mark Oakley, director of AA Cars, emphasized the increase in sales and car production, particularly in the EV sector.