New car market up in April: Ninth month of growth

Published: 04 May, 2023

New car sales were up 11.6% in April, with 132,990 vehicles registered, according to the latest figures from the SMMT.

Much of the increase has been in fleets. While sales to private buyers were down by 5.5%, fleet registrations were actually 33.1% higher.

Battery electric vehicles (BEVs) were the second most popular type, adding up to 15.4% of the total sold in the month. However, with higher energy costs and charging infrastructure concerns, it is now predicted that for the year they will only get up to 18.4% of the total, not the previously predicted 19.7%, The latest outlook for 2024, predicts 22.6% of new car registrations will be BEVs, Petrol cars made up 58.1% of all registrations.

Commenting on the figures, SMMT Chief Executive 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.”

Mark Oakley, Director of AA Cars, commented: “After nine straight months of accelerating sales figures, the new car market’s extraordinary recovery still has more miles left in the tank. The big question now is how demand will hold up in the face of stubbornly high inflation and rising interest rates, which make the cost of financing a new car more expensive.”

NFDA Chief Executive Sue Robinson said: “After a positive first quarter of 2023, April has seen a continuation of pre-pandemic trends in new vehicle sales. Electric vehicles continue to grow market share in the UK. However, the velocity of sales is being impeded by a lack of adequate charging infrastructure across the country.”

April was the ninth month of new car sales growth in a row, as John Wilmot, CEO, car leasing comparison website LeaseLoco, observed: “Although new car sales are still well below pre-pandemic levels, a ninth consecutive month of growth is starting to feel like an upward trend that has some momentum behind it. Growth is still likely to remain steady rather than spectacular over the coming months, while high inflation and the cost of living crisis weighs on consumer confidence. Buyers are tentatively returning to the new car market rather than rushing to the showrooms.

“Supply chain disruptions have eased, which is a positive, but until consumers feel reassured that inflation is heading in the right direction, there will probably be a level of caution when it comes to big ticket purchases.

“The strength of the EV market remains at the core of a sustained recovery in new car sales. Future new car sales will be highly dependent on people buying plug-ins, but with diesel and petrol prices falling appreciably from last year highs, for many switching to electric doesn’t feel like a decision that needs to be taken immediately.”

Weakest March for new car sales since 1998, but EVs way up
Despite battery electric vehicles making up 16.1% of all new car sales in March, the most recorded in a single month, overall sales were actually down 14.3%, making it the worst March since 1998, prior to the advent of two-plate changes per year, according to the latest figures from the SMMT.
EV sales second only to petrol in 2022
1,614,063 new cars were sold in the UK in 2022, down 2.0% on 2021, with supply chain issues, according to the latest figures from the SMMT. At those close of the year, EV sales were second only to petrol.
September new car sales: Weakest since 1998
Continuing supply chain disruption is being blamed for a 34.4% fall in new car sales in September, despite it being one of the two main number plate change months of the year.
New cars sales up in September as EV total hits one million
New car went up again in September, with registrations rising 4.6% to, 225,269 , according to the latest figures from the SMMT. While sales were 9,957 up on last year, the month saw sales still lagging 34.4% below pre-pandemic levels.

The month also saw the second highest ever monthly volume of battery electric vehicle (BEV) registrations in history, up 16.5% to 38,116 units, although plug-in hybrid vehicle (PHEV) sales dropped 11.5% to 12,281, Despite this, overall plug-in vehicles made up around one in five new cars sold in September. In total, 249,575 have now been sold during 2022, a quarter of the one million plug-in EVs on the road in total across the UK.

Hybrid electric vehicle (HEV) sales went up 16.5% to 29,088, while petrol car sales were up 4.3% to 126,873. Meanwhile, diesels went down 14.5% to 18,911.Commenting on the figures, SMMT Chief Executive Mike Hawes said, “September has seen Britain’s millionth electric car reach the road – an important milestone in the shift to zero emission mobility. Battery electric vehicles make up but a small fraction of cars on the road, so we need to ensure every lever is pulled to encourage motorists to make the shift if our green goals are to be met.The overall market remains weak, however, as supply chain issues continue to constrain model availability. Whilst the industry is working hard to address these issues, the long-term recovery of the market also depends on robust consumer confidence and economic stability.”
New car sales up in February, but action needed on EV infrastructure and VAT situation
New car sales shot up 15% in February, with 58,994 cars rolling out of showrooms, according to figures from the SMMT. However, despite the increase, sales for the month were still 25.9% below pre-pandemic levels.