Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

UK New Car Market Sees 22nd Month of Growth Amid Electrification Surge

by June 6, 2024
June 6, 2024
UK New Car Market Sees 22nd Month of Growth Amid Electrification Surge

The UK new car market has continued its growth streak for the 22nd consecutive month, buoyed by a surge in battery electric vehicle (EV) sales and the growing popularity of plug-in hybrids.

In May, 147,000 cars were registered, marking a 1.7% increase from the same month last year, according to the Society of Motor Manufacturers and Traders (SMMT). This represents the best May since 2021, although figures remain 20% below pre-pandemic levels in May 2019.

The shift towards new energy technologies has significantly impacted the market, with all forms of electrified vehicles showing notable growth. Battery electric car sales rose by over 6% to 26,000, capturing 17.6% of the total market, despite an 8% drop in sales at Tesla, the UK’s leading electric car brand. Plug-in hybrid sales surged by 31%, accounting for 8% of the market, while hybrid sales increased by 10%, representing a 13% market share.

However, the overall decline in diesel sales and a slight fall in petrol car sales, which still constitute 55% of the market, has continued. The latest figures also reveal that sales of electric cars to private motorists have decreased by 2% year on year. Retail buyers make up less than a fifth of zero-emission sales, with the majority of EVs going to fleet sales for large corporations, rental car firms, utility companies, government agencies, and small businesses, which benefit from company car tax breaks and salary sacrifice schemes not available to the general public.

Jamie Hamilton, automotive partner and head of electric vehicles at Deloitte, emphasized the need for more public charging infrastructure to encourage consumers to switch to electric vehicles. “Currently, electric vehicles don’t appear to make sense for consumers, unless they can charge their cars at home overnight. As a result, there does need to be a push on creating more publicly available charging stations,” he said.

Lisa Watson, director of sales at Close Brothers Motor Finance, noted that private buyers might be delaying decisions in anticipation of new incentives post-general election or the arrival of cheaper electric cars later in the year. “Consumers still remain hesitant to switch to electric vehicles, as inadequate infrastructure and the cost of switching continue to hold back widespread adoption,” she added.

SMMT Chief Executive Mike Hawes has called for a temporary halving of VAT on electric car purchases and a 75% cut in VAT on energy at public recharging points to support the mass adoption of zero-emission vehicles. He argued that without these measures, government quotas forcing manufacturers to hit 22% electric sales this year could lead to unsustainable discounting.

Colin Walker, head of transport at the Energy and Climate Intelligence Unit, highlighted the competitive nature of the market, stating that legacy carmakers like BMW, Mercedes, Kia, and Hyundai are likely to meet their quotas, which will continue to improve choice and reduce costs for British drivers. “This intense competition will continue to improve choice and bring down costs for British drivers. Rather than the war on motorists, this is a war for motorists,” Walker said.

The debate continues on how best to facilitate the transition to zero-emission vehicles, with various stakeholders advocating for a balance of incentives and regulations to drive the market forward.

Read more:
UK New Car Market Sees 22nd Month of Growth Amid Electrification Surge

0
FacebookTwitterGoogle +Pinterest
previous post
Tourist Tax Diverts Wealthy Visitors from London to Paris and Milan, Claims Cadogan Estates Boss
next post
North Sea Oil Project Delayed Amid Windfall Tax Uncertainty Before Election

You may also like

Getting to Know You: Chris Kemp, CEO &...

August 8, 2024

Trump’s media company shares plummet to record low...

August 20, 2024

Natwest upgrades AI chatbot to provide ‘human interaction’...

November 6, 2023

7 Best Digital Marketing Agencies for Electricians

November 14, 2024

Profits rise fourfold at ‘nimble’ Co-op Bank

March 2, 2023

Global Survey: Nearly Half of Financial Leaders Struggle...

March 17, 2025

Last orders for alcohol-free bar in Manchester city...

August 5, 2024

Lawrence Stroll increases Aston Martin shareholding after ‘incredible’...

October 10, 2023

Childcare costing parents up to 70 per cent...

September 6, 2022

Addison Lee invests in the future of London’s...

February 8, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,568)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved