July sees over 28% increase in new car registrations, marking a year of sales growth

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【Summary】New car registrations in the UK increased by 28.3% in July, marking a full year of growth. Company registrations and business registrations were the driving force behind the growth, while private demand remained stable. The Ford Puma was the best-selling car in July, and electric vehicles accounted for 16% of all registrations for the month. The Society of Motor Manufacturers and Traders (SMMT) emphasized the need for government support to incentivize consumers to switch to electric cars.

FutureCar Staff Aug 15, 2023 10:26 AM PT

July sees over 28% increase in new car registrations, marking a year of sales growth

The new car market has experienced a year of growth, with July marking the 12th consecutive month of year-on-year increase in registrations. 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 continuous growth has been attributed to the improving component supply chains enjoyed by carmakers. July 2021 was the best July since 2020, when dealers reopened following lockdown.

The growth in registrations was primarily driven by company and business registrations, with large fleet uptake increasing by 61.9% and business registrations rising by 28.7%. Private demand remained stable, experiencing a slight increase of 0.3%. 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 these, BEVs recorded the largest gain, with registrations increasing by 87.9% year-on-year. BEVs made up 16% of all registrations in July. The SMMT predicts that the number of BEVs registered will continue to rise, with a new BEV being registered every 60 seconds in July and this figure expected to decrease to every 50 seconds by the end of the year.

The SMMT emphasized the need for support in facilitating the transition to electric cars, stating that "every means of support must be provided." They highlighted the positive signs in the last quarter, including a record high of 3,056 new standard public chargers installed, which equates to one new charger for every 35 new cars fitted with a plug.

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 top-selling car of the year so far.

Industry experts have shared their insights on the market. Ian Plummer, commercial director at Auto Trader, noted that consumer interest in EVs was flat in July, indicating a slowdown in sales growth. Steve Huntingford, editor of What Car?, mentioned that interest in electric cars among private buyers has waned due to rising living costs and concerns about range and charging availability. Richard Peberdy, head of UK automotive at KPMG, highlighted that some consumers are trading down brands for their next car due to increased costs, but overall consumer car sales are up compared to last year.

Looking ahead, Lisa Watson, director of sales at Close Brothers Motor Finance, mentioned the potential impact of London's Ultra Low Emission Zone and similar schemes in other UK cities on new registrations. Mark Oakley, director of AA Cars, emphasized the need to accelerate the uptake of EVs and mentioned falling prices for used EVs, which may attract more drivers to consider them as their next car.