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 had 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 had 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 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 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 below the Automobile Emissions Buying and selling Scheme.
The Finances prolonged current enterprise and fleet incentives for BEVs, however modifications to Automobile Excise Responsibility and Firm Automotive 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 an announcement, Mike Hawes, SMMT chief govt, stated: “Large producer funding in mannequin alternative and market help helps make the UK the second largest EV market in Europe. That transition, nonetheless, 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 total uptake just isn’t excellent news for the economic system, for funding or for the surroundings. EVs already work for many individuals and companies, however to shift the complete market on the tempo demanded requires important 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.
“Nonetheless, the sector continues to be going through challenges. There could 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 alternate options. And fleet uptake has been the massive driver behind new BEV registrations, whereas demand amongst non-public consumers has been a lot decrease.
“It’s additionally wanting more and more possible 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, equivalent to this week’s resolution to extend the differential between absolutely electrical and different automobiles within the first charges of Automobile Excise Responsibility, could assist barely. However to keep away from momentum stalling, the business wants extra funding. Efforts to extend the provision and distribution of charging factors must be continued. It’s additionally essential that there’s a plan in place to handle the rising quantity of charging infrastructure.”
