Webcast ReviewsJohnson v Firstrand et al: What the auto finance ruling means for all broker-introduced business
Auto Finance Sponsored by Auto Finance News UK gets bus boost but green HGVs need backing Published: 15th November 2024 Share The UK’s bus, coach, and minibus market experienced robust growth in the third quarter of 2024, with new registrations rising by 36.1% compared to the same period last year, according to the Society of Motor Manufacturers and Traders (SMMT). This growth marks six consecutive quarters of market expansion, reflecting a steady recovery in passenger levels after the pandemic slump, supported in part by the government’s Bus Fare Cap Grant. The increase in new bus registrations was driven by minibuses and single-deck buses, with growth of 38.4% and 36.4%, respectively, while double-decker sales rose 28.4%. England led the market, accounting for nearly 88% of total new registrations, with Wales and Northern Ireland also seeing significant gains. Conversely, registrations in Scotland declined, having previously seen a surge. Notably, zero-emission buses (ZEBs) are gaining traction, with new registrations increasing by 48% to 484 units in Q3. So far this year, ZEBs comprise over 20% of all new registrations, driven by investment in cutting-edge electric and hydrogen technology. However, smaller operators, especially in rural areas, face hurdles due to high upfront costs and complex grant processes, highlighting a need for sustained government support and a long-term plan for net-zero transitions. While the bus sector accelerates toward decarbonisation, the HGV market showed a modest slowdown, with new registrations declining by 6% in Q3 following a spike in 2023. Demand for heavy goods vehicles (HGVs) remained strong relative to pre-pandemic levels, but the segment’s transition to zero-emission vehicles (ZEVs) has stalled. ZEV trucks accounted for just 0.5% of the market, unchanged from last year, reflecting challenges like limited charging infrastructure and a restrictive grant system. SMMT Chief Executive Mike Hawes said: “After last year’s surge in truck demand, one quarter of decline is not a cause for serious concern. “Falling zero emission truck uptake, however, is another matter, showing the market is struggling to keep up with ambition. Reforming the Plug-in Truck Grant and more rapidly rolling out infrastructure would help encourage more operators to switch to zero emission vehicles sooner, instead of delaying their transition and decarbonisation.” Lisa Laverick Editor - Asset Finance Connect Sign up to our newsletter Featured Stories NewsCar finance redress bill could hit £25 billion NewsZenith reports growth in underlying earnings NewsDiscounts drive EV growth amid wider market contraction Auto Finance