Car registrations surge 28% in July

author: FutureCar Staff    

The new car market has experienced a year of growth, with registrations increasing 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, highlighting a year of continuous growth. Car manufacturers have benefited from improved component supply chains, contributing to the positive trend. July 2021 was the best July since 2020 when dealers reopened after lockdown.

The growth in registrations was primarily driven by company and business registrations. Large fleets saw an increase of 61.9% with 80,961 units, while business registrations rose by 28.7% with 2,915 new vehicles. Private demand remained stable with a slight increase of 0.3% and 60,045 units. The Ford Puma was 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. BEVs experienced the largest gain, with registrations of pure-electrics rising by 87.9% year-on-year. They represented 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 account for 23% of all registrations in 2024.

The SMMT emphasized the importance of providing support to consumers in their transition to electric cars, stating that "every means of support must be provided." They suggested fiscal incentives and reassurance in the purchasing process as potential ways to encourage the adoption of electric vehicles. The SMMT also highlighted 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.

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

Industry experts had mixed opinions on the market. Ian Plummer, commercial director at Auto Trader, expressed disappointment in the flat consumer interest in EVs, indicating a potential slowdown in sales. Steve Huntingford, editor of What Car?, noted lower demand for new EVs among private buyers, citing rising living costs and concerns about range and charging availability. Richard Peberdy, head of UK automotive at KPMG, mentioned that some consumers are "trading down" brands due to higher costs but highlighted that overall consumer car sales are up, with electric and hybrids gaining market share. 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, emphasized the rebound in UK car production and the need to accelerate the uptake of EVs.

Overall, the new car market has shown sustained growth, particularly in the electric vehicle segment. However, industry experts suggest that more support and incentives are needed to encourage consumer adoption of electric cars. The availability of public charging infrastructure also needs to be improved to meet the increasing demand for electric vehicles.

FutureCar Staff