UK car industry body cuts 2024 sales forecast on weak EV demand

(Reuters) - Britain's auto industry body cut its 2024 forecast for new car sales on Monday, saying weak private retail demand for electric vehicles (EVs) is an overriding concern.

New car sales this year are expected to be at 1.97 million units, down from an earlier forecast of 1.98 million units, the Society of Motor Manufacturers and Traders (SMMT) said.

The forecast cut comes even as new car sales in July rose 2.5% year-on-year to 147,517 units, its 24th consecutive month of growth, as per SMMT data.

"With zero emission vehicles mandated to comprise a minimum 22% of each brand’s new car registrations over the full year, the pace of transition needs to increase significantly," the SMMT said.

The industry body added that the outlook for the year suggests that such a faster transition is looking increasingly unlikely given the current market conditions.

The body also cut the annual forecast for the battery electric vehicle (BEV) market share to 18.5% from 19.8% expected earlier.

"Weakening private retail demand particularly for EVs and despite generous manufacturer discounts, is the over-riding concern" SMMT chief Mike Hawes said in a statement.

(Reporting by Chandini Monnappa and DhanushVignesh Babu in Bengaluru; Editing by Eileen Soreng)