SMMT: Company cars and EVs drive November market bounceback

The UK new car market grew by 23.5% in November to 142,889 units registered in the fourth consecutive month of year-on-year growth, according to new figures published today by the Society of Motor Manufacturers and Traders (SMMT). .

The UK new car market grew by 23.5% in November to 142,889 units registered in the fourth consecutive month of year-on-year growth, according to new figures published today by the Society of Motor Manufacturers and Traders (SMMT). . Growth delivered the best total for November since 2019,1 with continued efforts by manufacturers to fulfill orders amid an erratic global supply of components. However, registrations during the month were still -8.8% below 2019 levels and, although further recovery is expected in 2023, global and domestic economic challenges mean the market will remain below pre-pandemic levels.

Registrations by large fleets energized the market, up 45.4% compared to November last year. Demand from private buyers also increased, albeit by less than 2.7%. Business registrations, meanwhile, have doubled, up 112.2%, but are still a small fraction of the overall market.

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The number of zero-emission vehicles continues to grow, with newly registered battery electric vehicles (BEVs) increasing by 34.2%, more than one car in five (20.5%) – the largest monthly share of BEVs this year. Conversely, plug-in hybrid registrations (PHEVs) fell by -5.8%, accounting for 7.1% of the market. As a result, around 39,558 new additions were registered, which is more than one in four (27.7%) cars that hit UK roads in November. Meanwhile, hybrid electric vehicles (HEVs) rose from 66.9% to 11.3% of the market, driven in particular by fleet operators seeking flexibility and emissions reductions.

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The most popular supermini and lower mid-size vehicle segments grew by 21.5% and 20.5% respectively in November, while dual-purpose vehicles grew by 21.8%. Luxury saloon and multi-purpose vehicles saw significant growth, up 87.3% and 288.6%, but these segments are still a small part of the market.

As growth returns to the new car market, the car sector is set to contribute an additional £8 billion to the UK economy in 2023, with market growth expected to reach 15.4%.2 UK Automotive is making rapid progress towards its net-zero targets, and further acceleration requires forward planning and collaboration from all stakeholders. Measures that boost car confidence in electric vehicles, including a fiscal framework that encourages EV adoption and targets to speed up the provision of charging infrastructure, will help ensure uptake is in line with the UK’s green targets, particularly as a mandate Ambitious Zero Emission Vehicle. comes into effect.

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Mike Hawes, CEO of SMMTsaid:

A recovery for Britain’s new car market is back within our grasp, powered by electrified vehicles and the sector’s resilience in the face of supply and economic challenges. As the sector looks to ensure that growth is sustainable in the long term, urgent measures are needed – in particular a balanced approach to driving EV adoption which recognizes that these vehicles are always more expensive, and measures to invest in network loads that are taken to attach. of necessity. By doing so we can whet the appetite of consumers across the country and accelerate the UK’s journey to net zero.

1 November 2019: 156,621 units.
2 Based on SMMT Market Outlook (October 2022) and Jato vehicle pricing data.

SOURCE: SMMT

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