Britain’s new automobile market has recorded a second fall in 2024 with registrations down six per cent to 144,288, figures from the Society of Motor Producers and Merchants (SMMT) reveal.
The automotive commerce physique mentioned declines have been recorded throughout all purchaser varieties, with fleets falling 1.7 per cent, and the low-volume enterprise market declining 12.8 per cent. Non-public purchases have been down 11.8 per cent.
The autumn was pushed by double-digit drops in petrol and diesel car deliveries, down 14.2 per cent and -20.5 per cent respectively. The uptake of hybrid electrical autos and plug-in hybrid electrical autos fell too at 1.6 per cent and three.2 per cent. Battery electrical autos (BEVs) recorded progress, with new fashions driving the strongest progress this 12 months, up 24.5 per cent to achieve a 20.7 per cent share of the market.
UK new automobile patrons can select from over 125 completely different BEV fashions, which is an uplift of 38 per cent over the past 10 months. SMMT famous that the typical BEV has a better upfront value than an ICE equal, however widening selection and producer discounting signifies that round one in 5 BEV fashions now has a decrease buy value than the typical petrol or diesel automobile.
Whereas nearly 300,000 new BEVs have reached the highway in 2024, this represents 18.1 per cent of the market. This is a rise on 2023, however in need of the 22 per cent goal for this 12 months and of the 28 per cent required in 2025 underneath the Car Emissions Buying and selling Scheme.
The Price range prolonged present enterprise and fleet incentives for BEVs, however modifications to Car Excise Responsibility and Firm Automobile Tax disincentivises low carbon car purchases and fleet renewal typically, SMMT mentioned, which dangers a delay to the general discount in highway transport emissions.
In a press release, Mike Hawes, SMMT chief govt, mentioned: “Large producer funding in mannequin selection and market assist helps make the UK the second largest EV market in Europe. That transition, nevertheless, should not perversely decelerate the discount of carbon emissions from highway transport. Fleet renewal throughout the market stays the quickest technique to decarbonise, so diminishing total uptake just isn’t excellent news for the economic system, for funding or for the surroundings. EVs already work for many individuals and companies, however to shift all the market on the tempo demanded requires important intervention on incentives, infrastructure and regulation.”
Commenting on October’s figures, Russell Olive, UK director, vaylens, mentioned: “Heavy discounting and a extra aggressive market have ignited demand for BEVs.
“Nevertheless, the sector continues to be dealing with challenges. There might have been a double-digit drop in petrol and diesel car deliveries, however the actuality is that it’s not sufficient to drive actual change with 56.6 per cent of patrons in October nonetheless choosing diesel or petrol options. And fleet uptake has been the large driver behind new BEV registrations, whereas demand amongst non-public patrons has been a lot decrease.
“It’s additionally wanting more and more possible that the UK will fall in need of the bold zero-emissions car mandate of twenty-two per cent by the top of the 12 months.
“Fiscal incentives, resembling this week’s resolution to extend the differential between totally electrical and different autos within the first charges of Car Excise Responsibility, might assist barely. However to keep away from momentum stalling, the business wants extra funding. Efforts to extend the supply and distribution of charging factors have to be continued. It’s additionally vital that there’s a plan in place to handle the rising quantity of charging infrastructure.”
