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UK New Car Registrations Rise With Electrified Vehicles Driving Growth
In a recent update from the Society of Motor Manufacturers and Traders (SMMT), the UK's new car registrations in April 2024 experienced a modest increase of 1.0%, marking a continuous growth trend for the 21st consecutive month. Despite this upward trajectory, the figures still lag 16.6% behind the pre-pandemic levels, highlighting the ongoing recovery challenges within the automotive sector.
The growth in registrations was predominantly driven by fleet purchases, which saw an 18.5% rise, contrasting with a 17.7% decline in private buyer registrations. A significant shift towards electrified vehicles was noted, with plug-in hybrids (PHEVs) leading the charge, followed by hybrid electric vehicles (HEVs) and battery electric vehicles (BEVs), which saw a 10.7% increase in registrations, capturing a 16.9% market share.
However, this surge in BEV demand primarily came from business buyers, as private demand for electric vehicles continued to wane. The SMMT has highlighted an urgent need for measures to boost private BEV acquisitions. The lack of government incentives for private motorists is identified as a major hurdle, despite an array of BEV models and attractive offers from manufacturers.
The SMMT has proposed several actions to invigorate the market, including a temporary halving of VAT on new BEV purchases and adjustments to the Vehicle Excise Duty for expensive vehicles to make zero-emission cars more accessible. Moreover, there's a call for improvements in the charging infrastructure to bolster consumer confidence in electric mobility.
Despite these efforts, projections indicate a decrease in BEV's market share to 19.8%, falling short of the government's 22% target. SMMT Chief Executive Mike Hawes emphasized the critical role of strong consumer EV demand for the sector's success and urged the government to provide substantial incentives and enhance the chargepoint network.
The UK automotive industry plays a crucial role in the economy, contributing £78 billion in turnover and £16 billion in value added. It stands at the forefront of advancing agendas for levelling up, achieving net zero targets, promoting global Britain, and supporting growth plans.
As the industry navigates through recovery and transformation phases, the emphasis on electrification and sustainable mobility becomes increasingly paramount. The call for government action reflects a broader industry consensus on the need for supportive policies to ensure a smooth transition towards a greener automotive future.
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