Today: Feb 14, 2025

UK New Car Registrations Record 22nd Consecutive Month of Growth in May

8 months ago

New car registrations in Britain have surged for the 22nd consecutive month, with a 1.7% increase in May, according to preliminary data from the Society of Motor Manufacturers and Traders (SMMT). The latest figures show 147,678 units hitting the roads, marking the strongest May performance since 2021, though still down by 19.6% compared to pre-pandemic levels in 2019.

The SMMT also reported a notable rise in the market share of battery electric vehicles (BEVs), which increased to 17.6% in May and 16.1% year-to-date. This sequential growth underscores the shifting preferences toward more sustainable vehicle options.

However, while fleet BEV uptake saw a robust 10.7% increase, private retail BEV registrations experienced a slight decline of 2.0%, equivalent to 98 fewer registrations than the same month last year. This dip comes despite manufacturers’ efforts to subsidize the transition to electric vehicles.

Fleet and business registrations were the primary drivers of market growth, with increases of 14.0% and 9.5% respectively. These gains managed to counterbalance a significant 12.9% drop in private retail registrations.

The demand for electrified vehicles continues to rise, with plug-in hybrids (PHEVs) showing the highest growth among all powertrains, up by 31.5% to secure an 8.0% market share.

Hybrids (HEVs) also grew by 9.6%, maintaining their position as the third most popular fuel type after petrol and battery electric vehicles, with a market share of 13.2%.

Despite these encouraging trends, the automotive industry faces significant challenges in meeting the government-mandated targets for zero-emission vehicles.

The Vehicle Emissions Trading Scheme requires 22% of new vehicles sold by each manufacturer this year to be zero emission, a goal that the current BEV uptake falls short of achieving.

Calls for Government Support

To bridge this gap, the SMMT has called on the government to introduce more substantial incentives for private consumers. Proposed measures include temporarily halving VAT on new BEV purchases and reducing the VAT on public charging from 20% to 5%, aligning it with domestic electricity rates.

These steps, according to the SMMT, could significantly boost BEV demand, potentially putting over 250,000 additional electric vehicles on the road over the next three years.

With over 100 EV models now available and a range of attractive offers from manufacturers, the automotive industry is poised to continue driving the transition to electric vehicles.

However, sustained growth and the achievement of emission targets will require a concerted effort from both the industry and the government to provide the necessary support and incentives.

The SMMT, representing the UK automotive industry, emphasizes the need for collaborative action to ensure the continued growth of the BEV market and the broader goal of decarbonizing road transport.

 

Fabrice Iranzi

Journalist and Project Leader at LionHerald, strong passion in tech and new ideas, serving Digital Company Builders in UK and beyond
E-mail: iranzi@lionherald.com

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