Yahoo Finance Over one million new cars registered in 2024 in post-pandemic record
More than a million new cars were registered in the UK during the first half of the year for the first time since before the pandemic, new industry figures show.
Data from the Society of Motor Manufacturers and Traders (SMMT) revealed the new car market grew 1.1 per cent in June as 179,263 vehicles rolled off factory lines.
Meanwhile, battery electric cars recorded their highest monthly market share since December 2023, with uptake levelling out at 16.6 per cent.
Growth in the new car market was driven primarily by the fleet sector, which saw uptake rise by 14.2 per cent. However, private demand fell for the ninth consecutive month, down 15.3 per cent, with retail buyers accounting for fewer than four in 10 new cars registered.
Mike Hawes, SMMT Chief Executive, said: “The year’s midpoint sees the new car market in its best state since 2021 – but this belies the bigger challenge ahead.
“The private consumer market continues to shrink against a difficult economic backdrop, but with the right policies in place, the next government can re-energise the market and deliver a faster, fairer zero emission transition.
“All parties are agreed on the need to cut carbon and replacing older fossil fuel based technologies with new electrified powertrains is the essential step to achieving that goal.”
The figures mark a significant milestone for the UK’s car industry, which was hammered by the global semiconductor shortage following Covid-19.
However, private demand across the sector has proven a contentious issue among experts. In particular, industry data shows private electric vehicle (EV) demand fell 10.8 per cent in the year to date, with fewer than one in five new battery electrics going to private buyers.
Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA), said: “Although the new electric vehicle market has seen another month of growth, the overall year-to-date market share of electric vehicles remains well below the 22 per cent target stipulated by the Zero-Emission Vehicle Mandate.
“Private demand continues to lag behind fleet, making it clear that revitalising the private electric vehicle market is a pressing issue that must be addressed immediately.”
The SMMT’s data on EV demand has, however, been criticised by some in the sector for failing to paint an accurate picture of the state of private consumer demand.
They argue consumers are increasingly buying EVs using salary sacrifice schemes, private leasing or flexible car financing options, which are not recorded as private purchases in the trade body’s figures.
