Britain’s new automobile market has recorded a second fall in 2024 with registrations down six per cent to 144,288, figures from the Society of Motor Producers and Merchants (SMMT) reveal.
The automotive commerce physique stated declines have been recorded throughout all purchaser sorts, with fleets falling 1.7 per cent, and the low-volume enterprise market declining 12.8 per cent. Personal purchases have been down 11.8 per cent.
The autumn was pushed by double-digit drops in petrol and diesel automobile deliveries, down 14.2 per cent and -20.5 per cent respectively. The uptake of hybrid electrical automobiles and plug-in hybrid electrical automobiles fell too at 1.6 per cent and three.2 per cent. Battery electrical automobiles (BEVs) recorded development, with new fashions driving the strongest development this 12 months, up 24.5 per cent to achieve a 20.7 per cent share of the market.
UK new automobile consumers can select from over 125 totally different BEV fashions, which is an uplift of 38 per cent during the last 10 months. SMMT famous that the common BEV has a better upfront price than an ICE equal, however widening selection and producer discounting implies that round one in 5 BEV fashions now has a decrease buy worth than the common petrol or diesel automobile.
Whereas nearly 300,000 new BEVs have reached the highway in 2024, this represents 18.1 per cent of the market. This is a rise on 2023, however wanting the 22 per cent goal for this 12 months and of the 28 per cent required in 2025 beneath the Automobile Emissions Buying and selling Scheme.
The Price range prolonged current enterprise and fleet incentives for BEVs, however adjustments to Automobile Excise Obligation and Firm Automobile Tax disincentivises low carbon automobile purchases and fleet renewal typically, SMMT stated, which dangers a delay to the general discount in highway transport emissions.
In a press release, Mike Hawes, SMMT chief govt, stated: “Huge producer funding in mannequin selection and market assist helps make the UK the second largest EV market in Europe. That transition, nevertheless, should not perversely decelerate the discount of carbon emissions from highway transport. Fleet renewal throughout the market stays the quickest technique to decarbonise, so diminishing general uptake isn’t excellent news for the financial system, for funding or for the atmosphere. EVs already work for many individuals and companies, however to shift all the market on the tempo demanded requires vital intervention on incentives, infrastructure and regulation.”
Commenting on October’s figures, Russell Olive, UK director, vaylens, stated: “Heavy discounting and a extra aggressive market have ignited demand for BEVs.
“Nevertheless, the sector remains to be dealing with challenges. There might have been a double-digit drop in petrol and diesel automobile deliveries, however the actuality is that it’s not sufficient to drive actual change with 56.6 per cent of consumers in October nonetheless choosing diesel or petrol options. And fleet uptake has been the massive driver behind new BEV registrations, whereas demand amongst personal consumers has been a lot decrease.
“It’s additionally wanting more and more probably that the UK will fall wanting the formidable zero-emissions automobile mandate of twenty-two per cent by the top of the 12 months.
“Fiscal incentives, comparable to this week’s determination to extend the differential between absolutely electrical and different automobiles within the first charges of Automobile Excise Obligation, might assist barely. However to keep away from momentum stalling, the trade wants extra funding. Efforts to extend the provision and distribution of charging factors should be continued. It’s additionally essential that there’s a plan in place to handle the rising quantity of charging infrastructure.”
