The UK's care market has seen an impressive surge, with a near 14% increase in September! This boom is largely attributed to the government's grant for electric vehicles (EVs) and industry-wide discounts.
According to the Society of Motor Manufacturers and Traders (SMMT), the UK's new car market experienced a 13.7% growth, resulting in 312,887 registrations. This performance is the strongest since September 2020, despite lockdown restrictions, making it the best month so far this decade.
But here's where it gets controversial... All market sectors contributed to this growth, with fleets leading the way, recording a 16.9% increase. Private consumer demand also rose, up 8.9%, while business registrations saw an impressive 28.6% boost.
Over half of all new vehicles registered during this period were electrified, with plug-in hybrids (PHEVs) being the fastest-growing powertrain, achieving a 12.2% market share. Hybrid electric vehicles (HEVs) also made up a significant 15.3% of deliveries.
Battery electric vehicles (BEVs) saw a 29.1% uptake, on par with the growth seen this year. With 72,779 registrations, it was a record month for BEV volumes, accounting for 23.3% of the market. This growth is largely attributed to manufacturer discounts and the introduction of the UK Government's Electric Car Grant (ECG).
ECG-qualifying models, which make up about 25% of available BEVs, experienced even faster growth, outpacing the overall electric market.
The SMMT highlights that September typically accounts for around one in seven annual registrations, and this strong performance offers a much-needed boost after a summer slowdown. Overall demand year-to-date is up 4.2%.
GlobalData analyst Jonathon Poskitt says the UK car market outlook remains challenging, with a cautious mood surrounding consumer demand. However, the government's ECG incentive, combined with manufacturer discounts, is a positive factor boosting EV sales.
Mike Hawes, SMMT Chief Executive, emphasizes that electrified vehicles are powering market growth after a sluggish summer. He adds that the Electric Car Grant is a crucial step in breaking down barriers for drivers to make the switch to electric, and tackling remaining roadblocks will be vital for the industry's success and environmental goals.
So, what do you think? Is the UK's care market on the right track with its focus on electric vehicles? Let's discuss in the comments and share your thoughts on this exciting development!
