Figures show dip in new car market for August

Some 84,575 new cars were registered in the UK last month, compared with 85,657 during August 2023, the Society of Motor Manufacturers and Traders (SMMT) said.

Registrations of new pure battery electric vehicles rose 10.8 per cent year on year, which the SMMT attributed to “heavy discounting by manufacturers over the summer and a raft of new models attracting buyers”.

August is traditionally one of the quietest months of the year for the new car market ahead of the introduction of new number plates in September.

The overall new car market grew by 5.1 per cent during the first eight months of the year compared with the same period in 2023.

The top selling models of the month were Ford Puma at 2,471, Kia Sportage at 1,962 and Tesla Model 3 at 1,542.

SMMT chief executive Mike Hawes said: “August’s EV growth is welcome, but it’s always a very low volume month and so subject to distortions ahead of September’s number plate change.

“The introduction of the new 74 plate, together with a raft of compelling offers and discounts from manufacturers, plus growing model choice, will help increase purchase consideration and be a true barometer for market demand.

“Encouraging a mass market shift to EVs remains a challenge, however, and urgent action must be taken to help buyers overcome affordability issues and concerns about charge point provision.”

In terms of new car registrations, Volkswagen figures for August stood at 7,988. Land Rover figures were 2,074 and Jaguar 607. JLR has its electric propulsion manufacturing centre at the I54, Wolverhampton, where drive units and engines are assembled.

MG, which has its head office at Longbridge but has its cars made abroad, saw car registrations for August at 2,953.

Ian Plummer, commercial director at online vehicle marketplace Auto Trader, said: “UK registrations were sluggish overall in August as buyers historically hold fire for September’s plate changes.

“Heavy discounting from manufacturers helped drive the electric share of new car leads on Auto Trader to 27%, the highest market share since the end of 2022.

“The Government must maintain financial incentives for buyers of new EVs as well as cutting VAT on public charging to help support the electric transition.”

Richard Peberdy, UK Head of Automotive for KPMG, said: "New EV sales are growing at a pace that presently makes it unlikely that some car makers will be able to meet the target that requires 22 per cent of their 2024 new car registrations to be zero emission. This is leading them to consider how they respond, pondering the likes of discounting, restricting petrol vehicle sales to try and meet the mandated EV percentage of their total sales, and other technical measures regarding carrying the mandate target into the following year.

“With the Budget coming into focus, calls from the industry are likely to ramp up again regarding how new private EV sales can be incentivised. New models emerging at lower prices and discounting are attracting some buyers from new, but others remain concerned about the rate of price depreciation and continue to choose the used EV market to transition. Charging also remains a currently immoveable barrier for some, particularly those with no off-street parking at home. All these factors continue to hold back the pace of EV transition, at a time when the zero emissions sales targets will climb year on year for car makers.”