New car market continued to grow in April

New car registrations in the UK recorded their ninth consecutive month of growth in April according to the latest data from the Society of Motor Manufacturers and Traders (SMMT).

The SMMT found registrations were up 11.6% to reach 132,990 registrations, and reached their highest level since April 2021. Growth was driven by large fleet registrations, which grew by nearly a third, with smaller business fleets up 13.3%; deliveries to private buyers meanwhile fell slightly, highlighting the continued strength of the second-hand market.

While electric-enabled vehicles (EVs) – including battery electric vehicles and plug-in and other hybrid electric vehicles – all saw growth and drivers look to choose more sustainable transport options, petrol-powered cars retained their best-selling status, accounting for 58.1% of all registrations.

The SMMT commented that continued gaps in infrastructure for electric vehicles, as well as the rising cost of electricity for households had seen the growth of the EV market slow down. The organisation has downgraded its annual market share predictions for electric vehicles from from 19.7% to 18.4%.

Mike Hawes, SMMT Chief Executive, said,

“The new car market is increasingly bullish, as easing supply chain pressures provide a much-needed boost. However, the broader economic conditions and chargepoint anxiety are beginning to cast a cloud over the market’s eagerness to adopt zero emission mobility at the scale and pace needed. To ensure all drivers can benefit from electric vehicles, we need everyone – government, local authorities, energy companies and charging providers – to accelerate their investment in the transition and bolster consumer confidence in making the switch.”

The commercial vehicles market also saw a similar positive picture, recording its fourth consecutive month of growth in light commercial vehicles, including vans, pick-ups and rigid-bodies light goods vehicles up to 6 tonnes. Registrations in the month grew by 4.9%, regaining ground on pre-pandemic levels, but as for cars, electric vehicle uptake is set to be lower than previously predicted, and the SMMT market share for EVs is also set to only reach 7.4% of light commercial vehicles by the end of 2023.

Mike Hawes, SMMT Chief Executive, added,

“Four months of growth signals recovery is in sight for the van market, with easing supply chain issues raising confidence and boosting the overall market outlook. Ongoing economic uncertainty, however, must be addressed to help sustain and expand EV uptake. To ensure green growth that decarbonises the UK, the ever-growing choice of electric vans delivered by manufacturers must be backed by the right infrastructure and incentives so more businesses can confidently make the switch.”