UK New Car Sales Rose Again in July, With Pure Electric Vehicle Sales Soaring Nearly 88%
Aug 07, 2023
According to Reuters, data from the Association of British Motor Manufacturers and Traders (SMMT) showed that in July this year, a brand new pure electric vehicle was sold in the UK every 60 seconds, driving the overall car sales in the country.
SMMT said the UK new car market has continued to grow this year as supply chain issues ease. Last month, new car registrations in the UK rose 28.3% year-on-year to 143,921 units, marking the 12th consecutive month of growth. From January to July, new car registrations in the UK were 1,093,641, up nearly 20% year-on-year, but still lagging behind pre-pandemic levels. The SMMT has said it could take another five years for the UK to return to producing 1 million or more cars a year.
In July, the market share of electrified vehicles exceeded one-third at 35.4%. Among them, the registration of battery electric vehicles (BEVs) soared nearly 88% to 23,010 units; Plug-in hybrid electric vehicle (PHEV) registrations increased 79.1% year-on-year to 11,702 units. Hybrid vehicle registrations increased by 18.9% y/y to 16,321 units.
Meanwhile, considering that the cost of living is likely to rise, the agency lowered its growth forecast for next year by 0.7% to 1.951 million units. By then, the market share of pure electric vehicles will reach 22.6%.
The UK government has proposed a zero-emission vehicle target, according to which electric vehicles must account for 22% of car sales from next year. "While EV sales in the UK have grown significantly, the EV market must grow faster if it is to outperform other markets and help the UK meet its ambitious but necessary environmental targets," the SMMT said. ”
SMMT CEO Mike Hawes said in a statement, "However, with higher inflation, rising costs of living, and zero-emission vehicle mandates set to dominate the market next year, consumers must be given every possible purchase incentive." ”
Jamie Hamilton, Partner and Head of Electric Vehicles at Deloitte Automotive, said: "More and more EV models will enter the UK market, potentially encouraging consumers who own petrol and diesel vehicles to buy EVs. ”
In October last year, inflation in the UK reached a 41-year high of 11.1%. Inflation in the UK has been easing at a slower pace compared to other advanced economies.
