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

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【Summary】New car registrations in the UK have increased by over 28% in July, marking a full year of sales growth. This growth is driven by company registrations, with large fleets increasing uptake by 61.9%. Electric vehicles (EVs) accounted for 35.4% of the market, with pure-electrics seeing an 87.9% year-on-year increase. However, consumer interest in EVs has remained flat, potentially due to rising costs and concerns about range and charging availability.

FutureCar Staff Aug 14, 2023 12:09 AM PT

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

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). 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 continuous growth in the market. Car manufacturers have benefited from improved supply chains for components. July 2021 saw the best performance since 2020, when dealers reopened following lockdown measures.

The growth in registrations was primarily driven by company and business registrations. Large fleet uptake increased by 61.9% to 80,961 units, while business registrations rose by 28.7% to 2,915 new vehicles. Private demand remained stable with a 0.3% increase 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 vehicles (EVs) accounted for 35.4% of the market, with battery electric vehicles (BEVs) seeing the largest gain. Registrations of pure-electric vehicles rose by 87.9% year-on-year, representing 16% of all registrations in July. The SMMT predicts that a new BEV will be registered every 50 seconds by the end of the year and every 40 seconds by the close of 2024. The SMMT also forecasts that by 2024, BEVs will make up 23% of all registrations.

The SMMT emphasized the need for support to encourage consumers to switch to electric cars, including fiscal incentives and purchase reassurance. Positive signs were seen in the installation of new standard public chargers, with a record high of 3,056 chargers installed in the last quarter. 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 in July with 4,124 registrations. It was followed by the Kia Sportage, Nissan Qashqai, Vauxhall Mokka, and Hyundai Tucson. The Ford Puma also maintained its position as the top-selling car year-to-date. Vauxhall's Corsa and the Nissan Qashqai secured the second and third spots, respectively.

Industry experts provided their insights on the figures. Ian Plummer, commercial director at Auto Trader, noted that consumer interest in EVs remained flat in July, indicating a need for rapid growth in adoption. Steve Huntingford, editor of What Car?, mentioned that interest in electric cars among private buyers had decreased due to rising living costs and concerns about range and charging availability. Richard Peberdy, head of UK automotive at KPMG, stated that consumers were "trading down" brands for their next car, while Lisa Watson, director of sales at Close Brothers Motor Finance, highlighted the potential impact of new emission schemes on new registrations.

The SMMT's figures also reflect the rebound in UK car production, which has seen five consecutive months of growth. Mark Oakley, director of AA Cars, suggested that falling prices for used EVs could attract more drivers to consider purchasing a second-hand electric vehicle.