Britain’s new automobile 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 mentioned declines have been recorded throughout all purchaser sorts, with fleets falling 1.7 per cent, and the low-volume enterprise market declining 12.8 per cent. Non-public 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 12 months, up 24.5 per cent to achieve a 20.7 per cent share of the market.
UK new automobile consumers can select from over 125 totally different BEV fashions, which is an uplift of 38 per cent during the last 10 months. SMMT famous that the common BEV has the next upfront value than an ICE equal, however widening selection and producer discounting signifies that round one in 5 BEV fashions now has a decrease buy worth than the common petrol or diesel automobile.
Whereas virtually 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 12 months and of the 28 per cent required in 2025 below the Automobile Emissions Buying and selling Scheme.
The Funds prolonged present enterprise and fleet incentives for BEVs, however adjustments to Automobile Excise Responsibility and Firm Automotive Tax disincentivises low carbon automobile purchases and fleet renewal usually, SMMT mentioned, which dangers a delay to the general discount in street transport emissions.
In an announcement, Mike Hawes, SMMT chief government, mentioned: “Huge producer funding in mannequin selection and market help helps make the UK the second largest EV market in Europe. That transition, nevertheless, should not perversely decelerate the discount of carbon emissions from street transport. Fleet renewal throughout the market stays the quickest strategy to decarbonise, so diminishing total uptake is just not excellent news for the financial system, for funding or for the atmosphere. EVs already work for many individuals and companies, however to shift the complete market on the tempo demanded requires important intervention on incentives, infrastructure and regulation.”
Commenting on October’s figures, Russell Olive, UK director, vaylens, mentioned: “Heavy discounting and a extra aggressive market have ignited demand for BEVs.
“Nevertheless, the sector remains to be going through 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 alternate 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 trying more and more possible that the UK will fall in need of the formidable zero-emissions automobile mandate of twenty-two per cent by the tip of the 12 months.
“Fiscal incentives, akin to this week’s resolution to extend the differential between totally electrical and different autos within the first charges of Automobile Excise Responsibility, might assist barely. However to keep away from momentum stalling, the business wants extra funding. Efforts to extend the provision and distribution of charging factors must be continued. It’s additionally vital that there’s a plan in place to handle the rising quantity of charging infrastructure.”
