Britain’s new automotive 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 mentioned declines have been recorded throughout all purchaser varieties, with fleets falling 1.7 per cent, and the low-volume enterprise market declining 12.8 per cent. Non-public purchases have been down 11.8 per cent.
The autumn was pushed by double-digit drops in petrol and diesel car deliveries, down 14.2 per cent and -20.5 per cent respectively. The uptake of hybrid electrical autos and plug-in hybrid electrical autos fell too at 1.6 per cent and three.2 per cent. Battery electrical autos (BEVs) recorded progress, with new fashions driving the strongest progress this yr, up 24.5 per cent to succeed in a 20.7 per cent share of the market.
UK new automotive patrons can select from over 125 completely different BEV fashions, which is an uplift of 38 per cent over the past 10 months. SMMT famous that the common BEV has the next upfront value than an ICE equal, however widening alternative and producer discounting implies that round one in 5 BEV fashions now has a decrease buy value than the common petrol or diesel automotive.
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 yr and of the 28 per cent required in 2025 below the Automobile Emissions Buying and selling Scheme.
The Price range prolonged present enterprise and fleet incentives for BEVs, however modifications to Automobile Excise Responsibility and Firm Automobile Tax disincentivises low carbon car purchases and fleet renewal typically, SMMT mentioned, which dangers a delay to the general discount in highway transport emissions.
In a press release, Mike Hawes, SMMT chief govt, mentioned: “Huge producer funding in mannequin alternative 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 option to decarbonise, so diminishing general uptake just isn’t excellent news for the financial system, for funding or for the setting. EVs already work for many individuals and companies, however to shift the whole market on the tempo demanded requires important intervention on incentives, infrastructure and regulation.”
Commenting on October’s figures, Russell Olive, UK director, vaylens, mentioned: “Heavy discounting and a extra aggressive market have ignited demand for BEVs.
“Nonetheless, the sector continues to be dealing with challenges. There might have been a double-digit drop in petrol and diesel car deliveries, however the actuality is that it’s not sufficient to drive actual change with 56.6 per cent of patrons in October nonetheless choosing diesel or petrol options. And fleet uptake has been the massive driver behind new BEV registrations, whereas demand amongst non-public patrons has been a lot decrease.
“It’s additionally wanting more and more probably that the UK will fall wanting the formidable zero-emissions car mandate of twenty-two per cent by the top of the yr.
“Fiscal incentives, corresponding to this week’s choice to extend the differential between totally electrical and different autos within the first charges of Automobile Excise Responsibility, 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 vital that there’s a plan in place to handle the rising quantity of charging infrastructure.”
