August new car growth fuelled by fleet registrations

The new car market grew 24.4% in August with 85,657 new vehicles registered, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT). While August is typically a quieter month with many buyers choosing to wait until the September numberplate change, an increase of 16,799 units means the sector is now entering a second year of growth. Despite this improved performance, the market still remains -7.5% below pre-pandemic levels.

The increase was fuelled by a surge in registrations by large fleets, rising 58.4% to 51,951 units, while business registrations grew 39.4% to 1,635 units. Conversely, private demand softened by -8.1%, compared with a supply-constrained 2022 market.

August

	2023	2022	% change	Mkt share -23	Mkt share -22
Private	32,071	34,891	-8.1%	37.4%	50.7%
Fleet	51,951	32,794	58.4%	60.7%	47.6%
Business	1,635	1,173	39.4%	1.9%	1.7%
Total	85,657	68,858	24.4%

Year to date	YTD 2023	YTD 2022	% change	Mkt share -23	Mkt share -22
Private	527,442	522,840	0.9%	44.7%	53.2%
Fleet	623,637	437,280	42.6%	52.9%	44.5%
Business	28,219	22,979	22.8%	2.4%	2.3%
Total	1,179,298	983,099	20.0%

Demand for electrified vehicles continued to grow, accounting for almost four in 10 (37.8%) new cars reaching the road. Battery electric vehicle uptake swelled by 72.3% to secure a 20.1% market share, an August record and the highest recorded since last December.

Plug-in hybrid uptake also rose significantly, by 70.0%, to account for 7.7% of new registrations. Hybrid volumes remained relatively stable with a 6.8% increase, comprising 10.0% of the market.

However, with less than four months to go until the expected introduction of a Zero Emission Vehicle Mandate, the industry still has no sight of the proposed regulation. The automotive sector is committed to Net Zero, but the diminishing time threatens the ability of the market to move.

Demand from both business and private consumers must be boosted still further if ambitions are to be met, but while businesses benefit from fiscal incentives to switch, there is no similar package for the private consumer market.

Mike Hawes, SMMT Chief Executive, said, “With the automotive industry beginning a second year of growth, recovery is underway with EVs energising the market. But with a new Zero Emission Vehicle Mandate due to come into force in less than 120 days, manufacturers still await the details. Businesses cannot plan on the basis of consultations, they need certainty. And now, more than ever, government must match action to ambition, ensuring there are the incentives and infrastructure in place to convince drivers to make the switch.”