Signs of hope for

new car market

Citroen car sales

THE UK new car market rose by 1.2 per cent in August, according to the latest figures from the Society of Motor Manufacturers and Traders.

The growth is the first seen since February, with some 68,858 new vehicles joining the road during what is typically the second quietest month of the year as many buyers choose to wait for a ‘new' number plate in September.

Despite the growth, August volumes were still the weakest for the month,bar 2021,since 2013 as supply chain pressures continued toconstrain the market.

Fleet registrations fell by 1.6 per cent, although this was offset by a 3.2 per cent increase in deliveries to private consumers.

Business customers saw the largest increase of 26.6 per cent, but the sector is small in volume and subject to volatility.

Overall growth in the month was driven primarily by battery electric vehicles which recorded a 35.4 per cent increase in volumes and a 14.5 per cent market share.

However, growth in this segment is slowing, with a year-to-date increase of 48.8 per cent, whereas at the end of the first quarter of the year, BEV registrations had been up by 101.9 per cent.

Plug-in Hybrid registrations fell by 23.1 per cent to comprise 5.6 per cent of monthly registrations. As a result, plug-in vehicles accounted for one in five (20.2 per cent) of August's registrations.

Hybrid electric vehicle registrations remained relatively stable, falling by 0.7 per cent.

Superminis remained the most popular vehicle class, growing market share to 34.0 per cent as 7.4 per cent more of them were delivered to customers than in August 2021.

Multi-purpose, luxury saloon and lower medium vehicles also recorded growth of 31.0 per cent, 1.5 per cent and 1.3 per cent respectively, while registrations of all other segments declined.

Year to date, registrations are down by 10.7 per cent on last year at 983,099 units - more than a third (35.3 per cent) lower than during the first eight months of pre-pandemic 2019 - demonstrating the scale of the challenge facing the auto industry in terms of recovery.

Mike Hawes, SMMT chief executive,said: "August's new car market growth is welcome, but marginal during a low volume month.

"Spiralling energy costs and inflation on top of sustained supply chain challenges are piling even more pressure on the automotive industry's post-pandemic recovery, and we urgently need the new Prime Minister to tackle these challenges and restore confidence and sustainable growth. With September traditionally a bumper time for new car uptake, the next month will be the true barometer of industry recovery as it accelerates the transition to zero emission mobility despite the myriad challenges."

The best selling car in August was the Volkswagen Polo with 1,902 models sold followed by the Ford Puma at 1,875 and the Hyundai Tucson at 1,739.


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