Car registrations surge 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, resulting in a year of continuous growth. Car manufacturers have benefited from improved component supply chains. July 2021 was the best July since 2020, when dealers reopened after lockdown.

The growth in registrations was primarily driven by company registrations, with large fleet uptake increasing by 61.9% to 80,961 units and business registrations rising 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 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 registrations of pure-electric vehicles rising by 87.9% year-on-year and accounting for 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 close of 2024. The SMMT predicts that BEVs will make up 23% of all registrations in 2024.

The SMMT emphasized the need for support in helping consumers transition to electric cars, calling for fiscal incentives and purchase reassurance. In positive news, 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 is an improvement compared to the same quarter last year when the ratio was one charger for every 53 new cars.

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's Tucson. The Ford Puma also maintained its position as the best-selling car year-to-date. Vauxhall's Corsa and the Nissan Qashqai secured second and third place, respectively.

SMMT chief Mike Hawes commented on the figures, highlighting the industry's commitment to meeting zero emission deadlines and the growing choice and innovation in the market. However, he emphasized the importance of providing incentives to consumers to make electric vehicles affordable and practical for all drivers.

Various industry experts shared their opinions on the figures. Ian Plummer, commercial director at Auto Trader, expressed disappointment in the flat consumer interest in EVs despite healthy electric registrations in July. Steve Huntingford, editor of What Car?, noted lower consumer demand for new EVs among private buyers due to rising costs of living and concerns about range and charging availability. Richard Peberdy, head of UK automotive at KPMG, mentioned that some consumers are "trading down" brands for their next car due to higher costs, but overall consumer car sales levels are up compared to last year. Lisa Watson, director of sales at Close Brothers Motor Finance, highlighted the potential impact of London's Ultra Low Emission Zone and similar schemes on new registrations. Mark Oakley, director of AA Cars, discussed the increase in sales and the need to accelerate the uptake of EVs.

FutureCar Staff