1. New car registrations in the UK rose 10.4% in March 2024, marking the 20th consecutive month of growth.
2. The increase was mainly driven by fleet investment, while weak private retail demand was constrained by economic factors.
3. Industry calls for EV incentives to boost market share and help consumers transition to zero-emission vehicles.
The UK new car market saw a 10.4% increase in registrations in March, marking the 20th consecutive month of growth. The rise was primarily driven by fleet investments, with private retail demand remaining weak. The industry is calling for incentives to boost electric vehicle (EV) sales, as battery electric cars are falling behind in the market.
Despite the growth in registrations, the market still lags behind pre-pandemic levels. Petrol cars dominated the market with a 55.7% share, while hybrid electric vehicles (HEVs) and plug-in hybrids also saw increased uptake. However, the market share for battery electric vehicles (BEVs) declined slightly, highlighting the need for more government support to accelerate the transition to zero-emission vehicles.
Manufacturers are offering incentives to encourage the adoption of EVs, but government support for private consumers is crucial for a faster transition. Suggestions include halving VAT on BEVs, revising car tax thresholds, and equalizing VAT rates for public charging. The Society of Motor Manufacturers and Traders (SMMT) Chief Executive emphasized the need for government assistance to achieve a sustainable transition to cleaner vehicles.