New car sales up 14.3pc in UK last month

Some 153,529 new cars were registered last month, up from 134,344 in October 2022, the Society of Motor Manufacturers and Traders said.

The SMMT revised upwards its forecast for the number of new cars that will be registered in 2023 and 2024, to 1,886,000 and 1,970,000 respectively.

Its previous forecast, issued in July, predicted that registrations would reach around 1,847,000 this year and 1,951,000 next year.

But the forecast for registrations of pure battery electric new cars this year has been downgraded from 440,000 to 439,000.

The market share of pure battery electric new cars last month was 15.6 per cent, up from 14.8 per cent a year ago.

JLR saw increases in sales for both Jaguar and Land Rover.

Jaguar sales were up 286.4 per cent at 1,449 with Land Rover rising 39.9 per cent to 4,582. MG, which has its headquarters at Longbridge but has its cars made abroad, rose 28 per cent to 6.079.

Top-selling brand in October was Volkswagen _ up 1.9 per cent to 13,058.

The Ford Puma was the best selling model at 4,824 and for the year to date is also top with 42,136 Pumas having been bought.

SMMT chief executive Mike Hawes said: "With demand for new cars surpassing pre-pandemic levels in the month, the market is defying expectations and driving growth.

"As fleet uptake flourishes, particularly for EVs, sustained success depends on encouraging all consumers to invest in the latest zero emission vehicles.

"The autumn statement is a key opportunity for government to introduce incentives and facilitate infrastructure investment.

"Doing so would send a clear signal of support for drivers, reassuring them that now is the time to switch to electric."

At least 22 per cent of new cars sold by each manufacturer in the UK next year must be zero emission, which generally means pure electric, under the Government's zero-emission vehicles (ZEV) mandate.

The threshold will rise each year until it reaches 100 per cent by 2035.

Failure to abide by the rule or make use of flexibilities, such as carrying over allowances from previous years, will result in a requirement to pay the Government £15,000 per polluting car sold above the limits.

Ian Plummer, commercial director at online vehicle marketplace Auto Trader, said: "With ever-growing zero-emission vehicle mandate requirements looming, manufacturers will be using every tool they can to increase new electric sales.

"Currently, our research shows over two-thirds of new electric cars are enjoying some kind of offer.

"By combining discounts and finance offers on the table, new electric car monthly payments are getting ever closer to petrol and diesel.

"This, paired with the potential £153 saving per 1,000 miles when fuelling an electric car, mean that right now it's a great time to consider going electric.

"If calls for delays to the rules of origin requirements are heeded, we can hope to see some significant growth in private new electric car sales over the coming months."

Rules of origin requirements are set to be introduced for trade between the UK and the EU from January 1 following post-Brexit agreements, although there are calls for them to be postponed.

Tariffs of 10% are due to be imposed on exports of electric cars if at least 45 per cent of their value does not originate in the UK or EU.

Manufacturers will struggle to meet that threshold as battery production within Europe has not increased as quickly as hoped.

The SMMT previously estimated the tariffs could result in an average price rise of £3,400 on EU-manufactured pure battery electric vehicles bought in the UK.

Alex Buttle, co-founder of used car marketplace Motorway.co.uk, commented: “There was nothing scary about new car sales in October _ they continued to soar despite the challenging economic conditions. This growth continues to be fuelled by fleet sales, especially when it comes to EV uptake with businesses keen to take advantage of the compelling tax incentives.

"While private car buyers may want to make the switch to electric, what will push more motorists to buy EVs would be similar tax incentives offered to fleet drivers. If the government can get behind an initiative like this, it’s likely that sales will surge to even greater levels ahead of the switchover in 2035.”

Mark Oakley, director of AA Cars, said: “September’s jump in sales – which came as drivers snapped up vehicles with the coveted, brand new 73 plates – was no flash in the pan.

“Today’s October data confirms that new car sales have risen for an incredible 15 months in a row, and demonstrates the resilience and adaptability of the automotive industry.

“The supply issues which previously plagued dealerships continue to ease as a wave of fresh models hits forecourts. "