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Purchases of new vehicles by fleets and businesses has driven up new car registrations in May, according to figures released by the Society of Motor Manufacturers and Traders (SMMT).
The 1.7% year-on-year growth in registrations in May is the 22nd consecutive monthly increase in car sales, although sales lag nearly 20% behind their pre-pandemic levels from 2019.
May 2024 saw 147,678 units reaching the road, with fleets and businesses fuelling growth, up 14.0% and 9.5% respectively, and offsetting a -12.9% decline in private retail. New car registrations also continued the shift away from traditional petrol and diesel powered vehicles. Demand for electrified vehicles rose, with plug-in hybrids (PHEVs) recording the highest growth of all powertrains, up 31.5% to reach an 8.0% market share.
Battery electric vehicle (BEV) registrations also outperformed the market, rising 6.2% to claim a 17.6% market share, however, growth was driven largely by fleets, with private purchases of BEVs falling 2% on the last May’s figures.
With sales behind the necessary trajectory for car manufacturers to meet sales volumes mandated on manufacturers by government in its Vehicle Emissions Trading Scheme, the SMMT is calling on the next government to provide private consumers with meaningful purchase incentives for electric vehicles. Currently there are over 100 EVs on the market, however, incentives for customers to switch to alternative powertrains are not universal and the SMMT argues manufacturer discounting cannot be sustained indefinitely to drive sales without compromising on investment in future technology.
Mike Hawes, SMMT Chief Executive, said,
“As Britain prepares for next month’s general election, the new car market continues to hold steady as large fleets sustain growth, offsetting weakened private retail demand. Consumers enjoy a plethora of new electric models and some very attractive offers, but manufacturers can’t sustain this scale of support on their own indefinitely. Their success so far should be a signpost for the next government that a faster and fairer transition requires carrots, not just sticks.“