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 stated 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. Personal purchases have 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 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 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 typical BEV has a better 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 typical petrol or diesel automotive.
Whereas nearly 300,000 new BEVs have reached the street in 2024, this represents 18.1 per cent of the market. This is a rise on 2023, however in need of the 22 per cent goal for this yr and of the 28 per cent required in 2025 beneath the Automobile Emissions Buying and selling Scheme.
The Finances prolonged current enterprise and fleet incentives for BEVs, however modifications to Automobile Excise Obligation and Firm Automotive Tax disincentivises low carbon automobile purchases and fleet renewal typically, SMMT stated, which dangers a delay to the general discount in street transport emissions.
In an announcement, Mike Hawes, SMMT chief govt, stated: “Huge 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 street transport. Fleet renewal throughout the market stays the quickest approach to decarbonise, so diminishing total uptake is just not excellent news for the financial system, for funding or for the surroundings. 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, stated: “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 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 options. And fleet uptake has been the large driver behind new BEV registrations, whereas demand amongst non-public consumers has been a lot decrease.
“It’s additionally wanting more and more probably that the UK will fall in need of the bold zero-emissions automobile mandate of twenty-two per cent by the top of the yr.
“Fiscal incentives, comparable to this week’s resolution to extend the differential between absolutely electrical and different autos within the first charges of Automobile Excise Obligation, might assist barely. However to keep away from momentum stalling, the trade wants extra funding. Efforts to extend the supply and distribution of charging factors should be continued. It’s additionally necessary that there’s a plan in place to handle the rising quantity of charging infrastructure.”
