The UK new car market remained relatively stable in August, despite being a traditionally quiet month for sales. According to the Society of Motor Manufacturers and Traders (SMMT), registrations declined by a modest -1.3% compared to the same period last year, reaching 84,575 units.
Fleet purchases continued to drive the market, accounting for 51,329 units, although this represented a slight -1.2% decrease compared to August 2023. Private buyers remained steady, with a 0.2% increase in registrations to 32,110. Business registrations experienced a more significant decline, falling by -30.3% to 1,136 units.
Petrol and diesel vehicles still dominate the market, together representing 56.8% of all new car sales in August. However, their uptake declined by -10.1% and -7.3% respectively. Plug-in hybrid (PHEV) registrations also decreased by -12.3%, while hybrid electric vehicle (HEV) sales saw a notable increase of 36.1%.
Battery electric vehicles (BEVs) continued their upward trajectory, with registrations rising by 10.8% in August. This growth was fueled by aggressive discounting from manufacturers and the introduction of new models. As a result, BEVs captured 22.6% of the market in August, the highest share since December 2022.
Year-to-date, BEV market share has reached 17.2% and is projected to further increase to 18.5% by the end of the year. However, this figure falls short of the 22% target set by the Zero Emission Vehicle Mandate.
Ahead of the Autumn Budget, the industry is urging the government to take urgent action to support the growth of the EV market. This includes implementing binding targets for public chargepoint provision, reintroducing incentives for private buyers, and removing disincentives such as the Vehicle Excise Duty expensive car supplement.
Mike Hawes, SMMT Chief Executive, commented, “August’s EV growth is encouraging, but it’s important to remember that it’s a low-volume month. The upcoming plate change in September, combined with manufacturer offers and expanding model choice, will be a true indicator of market demand. To truly encourage a mass shift to EVs, we need urgent action to address affordability and chargepoint concerns.”
