UK new car registrations rise for 21st month in a row

(Sharecast News) - UK new car sales rose for the 21st month in a row in April, according to the Society of Motor Manufacturers and Traders, driven by increased demand for fleet vehicles. SMMT said new car registrations grew 1% year-on-year to 134,274 units but were over 16% below pre-Covid levels.

Fleet registrations rose by 18.5% to 81,207 units, leading SMMT to hike its new car sales guidance for 2024 to 1.98m units - slightly ahead of the 1.90m units recorded in 2023.

Battery electric vehicle registrations rose 10.7%. However, SMMT noted that the increase was sustained entirely by business buyers, as private retail demand continued to drop. BEV registration forecasts were downgraded to making up 19.8% of the total UK market share as a result.

SMMT chief executive Mike Hawes said: "The new car market continues to grow even in the quieter months, driven primarily by fleet demand. This is particularly true of the electric vehicle sector, where the absence of government incentives for private buyers is having a marked effect. Although attractive deals on EVs are in place, manufacturers cannot fund the mass market transition single-handedly. Temporarily cutting VAT, treating EVs as fiscally mainstream not luxury vehicles, and taking steps to instil consumer confidence in the chargepoint network will drive the market growth on which Britain's net zero ambition depends."

Reporting by Iain Gilbert at Sharecast.com