The UK's new car market demonstrated renewed vigour in June, registering a 5.4% increase compared to the same period last year. According to the latest figures from the Society of Motor Manufacturers and Traders (SMMT), this marks the 21st consecutive month of growth, signalling a steady recovery for the automotive sector.
Fleet Investments Outpace Private Purchases
While overall numbers are encouraging, the growth story reveals contrasting trends between different buyer segments. Fleet investments surged by an impressive 14.2%, whereas private consumer uptake actually declined by 1.6%. This divergence highlights how business confidence is driving the market recovery while household spending remains cautious.
Electric Vehicle Momentum Continues
The transition to electrified vehicles maintained its pace, with battery electric vehicle registrations climbing by 7.4% to reach 38,262 units. Plug-in hybrids experienced even stronger growth, jumping by 31.5%, while hybrid electric vehicles increased by 12.1%.
Mike Hawes, SMMT Chief Executive, noted: "The year's midpoint sees Britain's new car market in good health, with steady growth powered primarily by fleet investment. This is particularly encouraging given the challenging economic backdrop facing both consumers and businesses."
Market Outlook and Challenges
Despite the positive trajectory, the market still faces headwinds. Year-to-date figures show the market remains 20.4% below pre-pandemic levels recorded in 2019. The SMMT has called for additional government support to accelerate the transition to zero-emission vehicles, including measures to encourage private buyer uptake and infrastructure development.
As the automotive industry continues its transformation, these latest figures provide cautious optimism for sustained recovery throughout 2024.
