UK new car market posts seventh consecutive month of growth

New car registrations in February rose 26.2% year-on-year, with the motor trade now just -6.5% down on its pre-pandemic figures.

While February is typically a low-volume month for new car registrations ahead of the March plate change, this year saw the motor trade see in its seventh consecutive month of growth, driven by an easing of challenges in the global supply chain and the continued rise in sales of electric and hybrid vehicles. In total, 74,441 new cars were registered over the course of the month, compared to a pre-pandemic total for February 2020 of 79,594.

Only executive and luxury saloons saw a fall in new registrations, with smaller and family-oriented models instead seeing the most growth – the supermini market segment accounted for 33.1% of all deliveries in February 2023.

Zero emission capable vehicles, meanwhile, continued their upward trend, with plug-in hybrids (PHEVs) rising 1.0% and battery electric vehicles (BEVs) posting another strong month, up 18.2% and accounting for one in six new UK car registrations.

February has also proved the best month in 25 years for registrations of new vans and other light commercial vehicles (LCVs). The Society of Motor Manufacturers and Traders (SMMT) latest data also revealed that, year to date, overall LCV registrations are up by 17.5% on the same period in 2022. Unlike for cars, deliveries of battery electric vans declined on last year’s performance, with the SMMT citing gaps in charging infrastructure as among reasons for the decline.

The data shared by the SMMT comes as the UK car market anticipates a year of double-digit growth to be revealed at the end of the current financial year in April.

With the upcoming Budget expected to include changes to reflect the transition to electric vehicles, the organisation Mike Hawes, SMMT Chief Executive, said,

“After seven months of growth, it is no surprise that the UK automotive sector is facing the future with growing confidence. It is vital, however, that government takes every opportunity to back the market, which plays a significant role in Britain’s economy and net zero ambition. As we move into ‘new plate month’ in March, with more of the latest high-tech cars available, the upcoming Budget must deliver measures that drive this transition, increasing affordability and ease of charging for all.”