UK new car market ends five months of decline

London – The UK new car market rose by 1.2% in August, ending five months of consecutive decline, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).

Some 68,858 new vehicles joined the road during what is typically the second quietest month of the year as many buyers choose to wait for new numberplates in September.

Year to date, registrations were down by 10.7% on last year at 983,099 units and more than 35% lower than during the first eight months of pre-pandemic 2019.

Despite the growth, August volumes were still the weakest for the month, bar 2021, since 2013, said SMMT in a 5 Sept statement.

According to the association, supply chain pressures continued to constrain the market during the month, as large fleet registrations fell by 1.6%.

This, however, was offset by a 3.2% increase in deliveries to private consumers.
Business customers saw the largest increase of 26.6%, but the sector is small in volume and subject to volatility.

Overall growth in the month was driven primarily by battery electric vehicles (BEVs), which recorded a 35.4% increase in volumes and a 14.5% market share.

However, SMMT noted that growth in this segment is slowing, with a year-to-date increase of 48.8%, down from a 102% rise reported at the end of the first quarter. 

“August’s new car market growth is welcome, but marginal during a low volume month,” said SMMT chief executive Mike Hawes.

According to the official the UK automotive industry’s post-pandemic recovery has been hampered by “spiralling energy costs and inflation on top of sustained supply chain challenges.”

“We urgently need the new prime minister [Liz Truss] to tackle these challenges and restore confidence and sustainable growth,” he concluded.