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 development, with new fashions driving the strongest development this yr, up 24.5 per cent to succeed in a 20.7 per cent share of the market.
UK new automobile consumers 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 alternative and producer discounting signifies that round one in 5 BEV fashions now has a decrease buy worth than the typical petrol or diesel automobile.
Whereas virtually 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 yr and of the 28 per cent required in 2025 beneath the Car Emissions Buying and selling Scheme.
The Funds prolonged current enterprise and fleet incentives for BEVs, however adjustments to Car Excise Obligation and Firm Automotive Tax disincentivises low carbon car purchases and fleet renewal usually, 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 alternative and market help 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 solution to decarbonise, so diminishing total uptake just isn’t excellent news for the economic system, for funding or for the setting. EVs already work for many individuals and companies, however to shift your complete market on the tempo demanded requires vital 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.
“Nonetheless, the sector remains to be dealing with challenges. There could 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 consumers in October nonetheless choosing diesel or petrol options. And fleet uptake has been the large driver behind new BEV registrations, whereas demand amongst personal consumers has been a lot decrease.
“It’s additionally trying more and more probably that the UK will fall in need of the formidable zero-emissions car mandate of twenty-two per cent by the top of the yr.
“Fiscal incentives, akin to this week’s choice to extend the differential between totally electrical and different autos within the first charges of Car Excise Obligation, could assist barely. However to keep away from momentum stalling, the business wants extra funding. Efforts to extend the supply and distribution of charging factors should be continued. It’s additionally necessary that there’s a plan in place to handle the rising quantity of charging infrastructure.”
