New car market reaches one-year of continuous growth

The new car market grew 28.3% in July with 143,921 new vehicles registered.  This means the market has enjoyed continuous growth for a full year.

According to the latest figures from the Society of Motor Manufacturers and Traders (SMMT), this was the best July performance since 2020.

Meanwhile, electrified vehicles accounted for more than a third (35.4% of the market).

Hybrid (HEV) volumes grew marginally although their overall market share fell to 11.3%, while plug-in hybrid (PHEV) registrations saw a significant uplift of 79.1% to account for 8.1% of the market.

However, the biggest increase was for battery electric vehicles (BEVs), which recorded an 87.9% increase to account for 16 of all new registrations for the month.

The demand for battery electric cars was such that a new one was registered every 60 seconds in the month. Furthermore, according to the latest market outlook, this will accelerate to one every 50 seconds by the end of the year, and up to one every 40 seconds by the end of 2024.

Mike Hawes, SMMT chief executive, said: “The industry remains committed to meeting the UK’s zero emission deadlines and continues to make the investments to get us there. Choice and innovation in the market are growing, so it’s encouraging to see more people switching on to the benefits of driving electric. With inflation, rising costs of living and a zero-emission vehicle mandate that will dictate the market coming next year, however, consumers must be given every possible incentive to buy.

“Government must pull every lever, therefore, to make buying, running and, especially, charging an EV affordable and practical for every driver in every part of the country.”