Auto Finance News

Company cars and EVs drive November market bounceback


The UK new car market grew 23.5% in November to 142,889 registered units 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 growth delivered the best total for November since 2019, with manufacturers continuing efforts to fulfil orders amid erratic global components supply.

However, registrations in the month were still -8.8% below 2019 levels and, while further recovery is anticipated in 2023, global and domestic economic challenges mean that the market will remain below pre-pandemic levels.

Registrations by large fleets energised the market, up 45.4% compared with November last year. Demand from private buyers also grew, albeit by a more modest 2.7%. Business registrations more than doubled, meanwhile, up 112.2%, but remain a small fraction of the overall market.

Zero emission vehicle uptake continues to grow, with newly registered battery electric vehicles (BEVs) up 34.2% to represent more than one in five new cars (20.5%) – the largest monthly share of BEVs this year. Conversely, plug-in hybrid (PHEVs) registrations fell by -5.8%, making up 7.1% of the market. As a result, some 39,558 new plug-ins were registered, representing more than one in four (27.7%) new cars joining UK roads in November. Hybrid electric vehicles (HEVs), meanwhile, rose by 66.9% to 11.3% of the market, driven particularly by fleet operators looking for flexibility and emissions reductions.

As growth returns to the new car market, the car sector is poised to deliver over £8 billion for the UK economy in 2023, with an anticipated 15.4% market growth. UK automotive is making rapid strides to deliver on its net zero targets, and further acceleration requires forward-thinking planning and collaboration from all stakeholders. Measures that boost motorists’ confidence in EVs, including a fiscal framework that encourages EV adoption and targets to speed up the provision of charging infrastructure, will help to ensure uptake is in line with the UK’s green goals, particularly as the ambitious Zero Emission Vehicle Mandate comes into effect.

Mike Hawes, SMMT Chief Executive, said: “Recovery for Britain’s new car market is back within our grasp, energised 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 for the long term, urgent measures are required – not least a fair approach to driving EV adoption that recognises these vehicles remain more expensive, and measures to compel investment in a charging network that is built ahead of need. By doing so we can encourage consumer appetite across the country and accelerate the UK’s journey to net zero.”