Passenger car registrations reach 1.9m as fleet investment accelerates, according to SMMT
London – The UK new-car market has recorded its best year since the Covid pandemic, finishing December with 9.8% year-on-year growth to just over 141,000 units, according to the Society of Motor Manufacturers and Traders (SMMT).
December marked the 17th month of consecutive growth for the market, with 2023 overall seeing registering 17.9% growth in deliveries to 1.903 million units, noted the UK industry body.
The nnnual growth was driven “entirely by fleet investment” as the previous year’s supply constraints faded and helped fulfil pent-up demand, added SMMT's report issued 5 Jan.
Fleet deliveries rebounded by 38.7% year-on-year, while business registrations - a small proportion of the market - fell 1.5%.
Private consumer demand remained stable at 817,673 units after a strong recovery in 2022, with cost-of-living pressures and high interest rates constraining growth.
Meanwhile, SMMT noted that the overall new-car market remained 17.7% below pre-pandemic levels.
The 2023 surge in uptake, however, saw the value of new-car sales jump more than £10 billion (€11.6 billion) to around £70 billion year-on-year, the association added.
By vehicle-type, buyers showed a continued preference for superminis, dual-purpose and 'lower medium' cars, which accounted for 29.8%, 28.6% and 28.2% of the market respectively.
As the industry transitions away from fossil fuels, drivers also continued to invest heavily in low- and zero-emission vehicles.
Hybrid electric vehicles (HEVs) recorded robust growth, up 27.1% to reach a 12.6% market-share in 2023.
Plug-in hybrids (PHEVs) also enjoyed a strong year, with a 39.3% increase in registrations to account for 7.4% of the market.
Uptake of battery electric vehicles (BEVs) reached record volumes – up by almost 50,000 units with 314,687 new registrations.
Looking ahead, SMMT said “the next few months are also likely to be volatile due to the regulatory uncertainties that have beset the market over the past few months."
For full-year 2024, it anticipates the UK new-car market to reach 1.97 million units, with BEVs taking a 22.3% market share.
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