Full year of growth for new car market in UK

Registrations of new cars were up 28.3 per cent in July compared with the same month last year, according to figures from the Society of Motor Manufacturers and Traders.

It was the 12th consecutive monthly year-on-year increase, as global supply shortages continue to ease.

In total, 143,921 new vehicles were registered in July.

MG, which has its headquarters at Longbridge and has its cars made overseas, enjoyed a 97.3 per cent rise to 6,070.

It was a disappointing month for JLR, which has its engines made at Wolverhampton. Jaguar sales were down 16.2 per cent to 1,046 and Land Rover dropped 7.6 per cent to 4,470.

Volkswagen sold the most cars by brand with 13,064 – up 28.3 per cent - and the best selling model was the Ford Puma with 4,124. It is also leading for the year with 26,889 so far.

New battery electric vehicles took a 16 per cent market share in July and the SMMT anticipates the figure will rise to nearly 23 per cent across the whole of next year.

Electrified vehicles, including hybrids, plug-in hybrids and battery electric vehicles, accounted for 35.4 per cent of the market in total.

This was the best July performance for new car sales since 2020, when demand for new cars spiked after three months of lockdown during the pandemic.

Despite this year's continuous growth, the overall market remains below pre-pandemic levels, the SMMT said.

Earlier this week, Prime Minister Rishi Sunak said the ban on the sale of new petrol and diesel cars from 2030 remains Government policy.

He has been under mounting pressure after more than 40 Conservative MPs and peers wrote to him calling for the deadline to be pushed back, saying the ban will cause "grave harm" to the economy and leave drivers "worse off".

Mike Hawes, SMMT chief executive, said: "The industry remains committed to meeting the UK's zero emission deadlines and continues to make the investments to get us there.

"Choice and innovation in the market are growing, so it's encouraging to see more people switching on to the benefits of driving electric.

"With inflation, rising costs of living and a zero emission vehicle mandate that will dictate the market coming next year, however, consumers must be given every possible incentive to buy.

"Government must pull every lever, therefore, to make buying, running and, especially, charging an EV, affordable and practical for every driver in every part of the country."

Mark Oakley, Director of AA Cars, said: “The new car market remains incredibly resilient despite the inflationary squeeze on consumer spending, posting 12 straight months of rising sales.

“The continued increase in sales mirrors the rebound in UK car production, which has also recorded five successive months of growth. This boost in supply is helping drivers pick up the keys to the newest models much more quickly, and shorter wait times do help sales.

“The first cars with the coveted September registration plates will be appearing on forecourts next month, and dealers will be hoping this provides further momentum to sales."

Jon Lawes, managing director at Novuna Vehicle Solutions, said: “Recent calls to dilute net zero targets are creating a level of uncertainty detrimental to driver appetite for EVs and the industry’s propensity to deliver a zero emissions future.

“JLR’s investment in a much-needed electric car battery gigafactory illustrates the enormous benefits on offer when business has confidence in the UK’s transition. Yet, any uncertainty around the direction of travel the Government is taking threatens to undermine momentum as 2030 approaches."