- New car registrations surge 25.8% to 177,266 units in June
- BEV market grows by 39.4% in June as industry calls for a VAT cut on public charging
New car registrations soared 25.8% in June to 177,266 units, marking the 11th consecutive month of growth, according to the figures that the Society of Motor Manufacturers and Traders released July 5.
“With waiting times easing and pent-up demand being met, the sector is a rare bright spot in a gloomy economic landscape, even though overall market volumes remain below pre-pandemic levels,” SMMT stated, underscoring how the industry is gradually overcoming the pandemic supply chain shortages that weighted on production volumes over the last two years.
Battery electric vehicle registrations again surged 39.4% year on year to 31,700 units, making up 17.9% of the total market. Nevertheless, the association called for a cut in the value-added tax on public EV charging.
In June, petrol-fueled cars jumped 22.7% year on year and remain the most popular vehicles, while hybrids and plug-in hybrids also soared, by 40.1% and 65.5% respectively, but diesel registrations suffered, dropping 13.5% year on year.
“The new car market is growing back and growing green, as the attractions of electric cars become apparent to more drivers,” said SMMT CEO Mike Hawes, “but meeting our climate goals means we have to move even faster. Most electric vehicle owners enjoy the convenience and cost saving of charging at home but those that do not have a driveway or designated parking space must pay four times as much in tax for the same amount of energy,” he said. “This is unfair and risks delaying greater uptake, so cutting VAT on public EV charging will help make owning an EV fairer and attractive to even more people.”
In the first six months of 2023, the market share for BEVs climbed 16.1%, but the association underscored “mores need to be done” as the zero-emission vehicle mandate requiring 22% BEV registrations per manufacturer is six months away.
Author Annalisa Villa, annalisa.villa@spglobal.com
