The UK’s new car market experienced a downturn in October 2024, with registrations falling by 6% year-on-year to 144,288 units, according to the latest data from the Society of Motor Manufacturers and Traders (SMMT).
The decline was due to a drop in petrol and diesel vehicle deliveries by 14.2% and 20.5%, respectively. Sales of hybrid and plug-in hybrid vehicles also slightly decreased.
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In addition, all buyer categories saw declines: private purchases continued a two-year slide, down 11.8%; fleet sales fell 1.7%; and business sales dropped 12.8%, per the SMMT.
However, battery-electric vehicles (BEVs) stood out as the only category to witness growth, with a notable 24.5% increase, claiming a 20.7% share of the market.
Despite the positive trend in BEV adoption, the overall market contraction equates to a £350m loss in turnover.
While BEVs have seen nearly 300,000 new registrations this year, accounting for 18.1% of the market, this is still below the 22% target for the year and the 28% goal for 2025 set by the Vehicle Emissions Trading Scheme.
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By GlobalDataThe UK Budget has extended incentives for business and fleet BEV purchases.
However, changes to Vehicle Excise Duty and Company Car Tax are expected to hinder the adoption of low-carbon vehicles and delay the reduction of road transport emissions, SMMT said.
SMMT CEO Mike Hawes said: “Massive manufacturer investment in model choice and market support is helping make the UK the second largest EV market in Europe. That transition, however, must not perversely slow down the reduction of carbon emissions from road transport.
“Fleet renewal across the market remains the quickest way to decarbonise, so diminishing overall uptake is not good news for the economy, for investment or the environment.
“EVs already work for many people and businesses, but to shift the entire market at the pace demanded requires significant intervention on incentives, infrastructure and regulation.”
SMMT earlier reported that the UK’s new car market witnessed a modest increase of 1% in September 2024 due to fleet purchases and EV discounting.
