The UK new car market saw a slight decline in August, with registrations falling by 1.3%, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).
August, traditionally a quieter month for car sales as buyers often wait for September’s new number plates, saw 84,575 units registered, just 1,082 fewer than the same period last year.
Fleet purchases continued to dominate the market, representing 60% of all registrations, despite a 1.2% year-on-year decline, with 51,329 units sold. Private buyer registrations remained stable, increasing by a modest 0.2% to 32,110 units, while business registrations fell sharply by 30.3% to 1,136 units.
In terms of fuel types, petrol and diesel vehicle registrations dropped by 10.1% and 7.3% respectively, though they still accounted for 56.8% of all new cars registered in August.
Plug-in hybrid (PHEV) registrations also declined by 12.3%, holding a 6.8% market share. However, hybrid electric vehicles (HEVs) saw significant growth, with registrations increasing by 36.1%, capturing 13.8% of the market.
Battery electric vehicles (BEVs) showed notable progress, with registrations rising by 10.8%. This was driven by manufacturer discounts over the summer and the introduction of new models, leading to a market share of 22.6% in August—the highest since December 2022 when BEVs accounted for 32.9% of new car sales.
Year-to-date, BEVs hold a market share of 17.2%, and this is expected to increase to 18.5% by the end of the year, with approximately 364,000 BEV registrations forecasted. Despite this growth, the market is still expected to fall short of the 22% target set by the Zero Emission Vehicle (ZEV) Mandate.
Mike Hawes, SMMT Chief Executive: Hawes welcomed the growth in electric vehicle (EV) sales in August but noted the low volume of registrations in the month, making it susceptible to distortions ahead of September’s new number plate introduction. He emphasised that the new 74 plate, combined with attractive offers and increased model choice, will provide a clearer indication of market demand. However, he stressed that encouraging a mass market shift to EVs remains challenging and called for urgent action to address affordability issues and concerns about charging infrastructure.
Industry comments
Jamie Hamilton, Automotive Partner and Head of Electric Vehicles at Deloitte : Hamilton observed a "slight decrease" in fleet sales in August but acknowledged their continued dominance in market share. He expects September, with the introduction of new registration plates, to offer a clearer market picture. Hamilton also anticipates more incentives to facilitate the switch to electric vehicles, particularly as the industry faces pressure to meet the 22% target set by the Zero Emission Vehicle (ZEV) mandate. He highlighted the importance of growing confidence in the second-hand EV market and the need for improved charging infrastructure, especially for those without access to off-street parking.
Philipp Sayler von Amende, Chief Commercial Officer at Carwow : Sayler von Amende saw the SMMT figures as indicative of an "improving picture" for battery electric vehicles (BEVs). He highlighted a rise in BEV and plug-in hybrid vehicle (PHEV) enquiries, showing optimism for the fourth quarter. However, he pointed out that BEV leads take longer to convert, requiring more guidance for new EV buyers. Sayler von Amende stressed that while manufacturers are making bold moves to drive the BEV market, success will depend on dealers who can engage effectively and adapt to the unique characteristics of the BEV sales journey.
David Borland, EY UK & Ireland Automotive Leader : Borland noted the "modest 1.3% decline" in August registrations, attributing it to the quieter nature of the month. He highlighted the dominance of fleet sales, which he described as a "less profitable" channel, making up 60% of the market share. Borland also acknowledged the growth in BEV sales, with a 10.8% increase, but warned of challenges ahead in meeting the ZEV mandate’s 22% target, balancing volume aspirations with the risk of financial penalties.
Ali Fitt, EY UK Automotive Tax Director : Fitt acknowledged the resilience of the UK automotive sector despite a slight downturn in August. However, he expressed concerns about the sustainability of this growth in the long term, particularly in terms of cash flow and profitability. Fitt emphasised the need for manufacturers to balance regulatory compliance with competitive pricing and a compelling consumer proposition. He also pointed to the importance of positive consumer sentiment and noted that upcoming developments, such as the Autumn Budget and new products in September, will be critical for the industry.
Kim Royds, Director of Mobility at Centrica : Royds found it "encouraging" that EV adoption remained strong despite August being a typically quiet month. She called for the introduction of unique tariff offerings to encourage the switch to EVs and stressed the need to address the disparity between home and public EV charging. Royds advocated for a collaborative approach between policymakers and industry leaders to meet the growing demand for electric vehicles.
Nick Williams, Managing Director at Lex Autolease : Williams welcomed the rise in sales, which he saw as positive for manufacturers seeking stability. However, he noted that consumer sentiment and confidence still need improvement, particularly around battery life and the benefits of lower running costs. Williams called for cross-industry collaboration, including government support for public charging infrastructure and further incentives to ease the transition to EVs.
Lisa Watson, Director of Sales at Close Brothers Motor Finance : Watson described the dip in new car sales as "disappointing but not surprising," attributing it to buyers waiting for new registration plates and potential Budget announcements. She acknowledged the strong demand for BEVs but warned that high costs and infrastructure challenges remain barriers. Watson called for government incentives in the upcoming Budget to support the uptake of EVs and help meet the ZEV mandate.
"UK new car market declines slightly in August amid low seasonal demand: SMMT" was originally created and published by Motor Finance Online , a GlobalData owned brand.
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