UK car sales are booming and at their highest since the pandemic as Brits return to the showrooms.
The rise is being put down to popular new models and key incentives to buy.
GettyUK car sales are now at their highest since the pandemic[/caption]
Car sales in 2023 saw 1.9million models registered, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).
That’s an increase of 289,000 compared to the 30-year low in 2022 when just 1.6m vehicles were registered.
Most of the rise was down to fleet customers – where a vehicle is owned by a business or government agency rather than an individual – which registered 1.1m cars alone, an increase of 38.7 per cent, year on year.
The private market remained stable with 818,000 registrations although the cost of living crisis and high interest rates continued to impact the market and restrict further growth.
However, despite the rise last year, the numbers were still down by 17.7 per cent on the high of 2019 of 2.3m.
SMMT boss Mike Hawes said the industry “faces 2024 with a lot more confidence and optimism” than the year before.
He predicted the market would continue to grow to 1.97m this year.
The biggest driver of growth was the record take-up of electric vehicles, which accounted for one in six cars registered.
This was boosted by fleet buyers, helped by the tax incentives for going electric – benefit-in-kind tax rates will remain at just 2 per cent until at least 2025.
In 2023, 315,000 EVs were registered, up 50,000 in 2022, with 242,235 going to fleets, meaning that just 8.9 per cent of EVs sold were to private buyers.
EV sales in 2020 and 2021, combined, amounted to 298,932.
Hybrids recorded 27.1 per cent growth in 2023, equating to a 12.6 per cent market share, while plug-in hybrids were up 39.3 per cent, for 7.4 per cent of the market.
Buyers continued to show a liking for superminis and SUVs, which made up 29.8 per cent, some 86,000 vehicles, and 28.6 per cent, 82,000 vehicles, of total car sales.
Crossovers, like the Ford Puma, also put in a strong showing, taking a market share of 28.3 per cent, equating to 81,000 cars.
These three sectors of the UK car market have been the most popular since 2013.
Mr Hawes said: “With vehicle supply challenges fading, the new car market is building back with the best year since the pandemic.
“Energised by fleet investment, particularly in the latest EVs, the challenge for 2024 is to deliver a green recovery.”
The figures come as the SMMT, backed by the car industry, has once again called for the government to reintroduce EV incentives for private buyers, as the data showed that consumer demand has flattened, Autocar reports.
The lobby group wants Westminster to halve VAT on new EVs for three years to match the support currently available to business buyers.
Hawes says the incentive will add an extra 250,000 cars on the road over that period.
SMMT said that: “More drivers would upgrade their existing petrol or diesel car to a new zero-emission alternative, widening the future supply of used electric vehicles and making investment in charge point roll-out even more compelling”.
Hawes said: “Government has challenged the UK automotive sector with the world’s boldest transition timeline and is investing to ensure we are a major maker of electric vehicles.
“It must now help all drivers buy into this future with consumer incentives that will make the UK the leading European market for ZEVs (Zero Emission Vehicles).”
GettyIt’s predicted the car market will continue to grow in 2024[/caption]