The UK's automotive sector has roared into 2024, with new car registrations surging for the fourth consecutive month. January saw a robust 8.2% year-on-year increase, equating to 142,876 new vehicles finding their way onto British roads, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).
This sustained growth represents the best performance for the month of January since 2020, signalling a strong and steady recovery for the industry after several challenging years.
Electric Vehicles Charge Ahead
The push towards electrification continues to gain significant momentum. Registrations for battery electric vehicles (BEVs) climbed by an impressive 21.0%, capturing a 14.7% market share. Plug-in hybrids (PHEVs) also saw a healthy uptick of 31.1%.
However, the overall figures reveal a nuanced picture. Hybrid electric vehicles (HEVs), which saw a slight dip of -1.2%, still managed to secure a 13.1% share of the market.
Industry Voices Cautious Optimism
Mike Hawes, SMMT Chief Executive, welcomed the positive data but issued a note of caution, highlighting the ongoing challenges for the electric vehicle market.
"It's been a good start to the year for the UK car industry, but to sustain this growth and achieve the ambitious targets set for the industry, we need to address the key barrier of affordability. The upcoming Budget is a critical opportunity for the government to incentivise private EV buyers and make the transition accessible to all," Hawes stated.
A Look at the Broader Market
The growth was predominantly driven by large fleet investments, which soared by 29.9%. In contrast, registrations by private consumers experienced a decline of -15.8%.
In the brand rivalry, Volkswagen claimed the top spot for the month, followed closely by Audi and Ford, showcasing a competitive and dynamic market landscape as the new year gets underway.
