Car registrations surge in July, marking a year of sales growth

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 were up by 28.3% compared to the same month last year. This marks the 12th consecutive monthly year-on-year increase, indicating a year of continuous growth. Car manufacturers have benefited from improving 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 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 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 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 saw the largest gain, with registrations of pure-electrics rising by 87.9% year-on-year, representing 16% of all registrations for the month. The SMMT reported that a new BEV was registered every 60 seconds in July, and this frequency is expected to increase 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 account for 23% of all registrations in 2024.

The SMMT emphasized the need for support in encouraging consumers to switch to electric cars. They stated that "every means of support must be provided," including fiscal incentives and reassurance for purchasers. The organization 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, 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. It was followed by the Kia Sportage, Nissan Qashqai, Vauxhall Mokka, and Hyundai Tucson. The Ford Puma also maintained its position at the top of the year-to-date chart with 26,889 registrations, followed by the Vauxhall Corsa and the Nissan Qashqai.

Industry experts shared their thoughts on the figures. SMMT chief Mike Hawes expressed the industry's commitment to meeting the UK's zero emission deadlines and the importance of making electric vehicles affordable and practical for all drivers. Auto Trader's commercial director, Ian Plummer, noted that consumer interest in EVs was flat in July, potentially due to recent headlines about the 2030 ban. What Car? editor Steve Huntingford observed lower consumer demand for new EVs among private buyers, citing rising living costs and concerns about range and charging availability. KPMG's head of UK automotive, Richard Peberdy, mentioned that some consumers are "trading down" brands due to higher costs but overall car sales levels are up, with electric and hybrids gaining market share.

There were also comments regarding the impact of schemes such as London's Ultra Low Emission Zone on new registrations. Lisa Watson, director of sales at Close Brothers Motor Finance, mentioned that the introduction of such schemes may make a new car purchase a necessity. Mark Oakley, director of AA Cars, highlighted the increase in sales reflecting the rebound in UK car production, particularly in the EV sector. Oakley also noted falling prices for used EVs, which may attract more drivers to consider a second-hand electric vehicle.

Overall, the growth in new car registrations and the increasing popularity of electric vehicles demonstrate the ongoing evolution of the automotive industry.

FutureCar Staff