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 once again 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 a year of continuous growth for the industry. Car manufacturers have benefited from improved component supply chains, leading to this positive trend. July 2021 was the best July since 2020 when dealers reopened after lockdown measures were lifted.

The growth in the new car market was primarily driven by company registrations. Large fleets saw a 61.9% increase in uptake, with 80,961 units registered. Business registrations also rose by 28.7% to 2,915 new vehicles. Private demand remained stable, with 60,045 units registered, representing a 0.3% increase. 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. Among them, BEVs saw the largest gain, with registrations increasing by 87.9% year-on-year. BEVs made up 16% of all registrations for the month. 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 by 2024, BEVs will account for 23% of all registrations.

The SMMT emphasized the importance of providing support to consumers in transitioning to electric cars, stating that "every means of support must be provided." They called for fiscal incentives and reassurance to encourage more consumers to make the switch. 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 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 lead in the year-to-date chart with 26,889 registrations, followed by the Vauxhall Corsa and the Nissan Qashqai.

Industry experts have provided their insights on the market. Ian Plummer, commercial director at Auto Trader, noted that consumer interest in EVs was flat in July, despite healthy electric registrations. Steve Huntingford, editor of What Car?, mentioned that while electric car registrations continue to increase, private buyer interest has waned due to rising costs and concerns about range and charging availability. Richard Peberdy, head of UK automotive at KPMG, highlighted that consumers are "trading down" brands for their next car due to higher costs, but overall consumer car sales, including electric and hybrids, have grown this year. Lisa Watson, director of sales at Close Brothers Motor Finance, mentioned the potential impact of London's Ultra Low Emission Zone and similar schemes on new registrations. Finally, Mark Oakley, director of AA Cars, stated that sales growth reflects the rebound in UK car production, particularly in the EV sector.

FutureCar Staff