The UK's new car market grew by 11.7% in July compared with the same month last year, according to new figures from the Society of Motor Manufacturers and Traders (SMMT). Some 156,571 new cars were registered last month, marking the best July performance since 2019 and the eighth consecutive month of year-on-year growth.
Electrified vehicles drive growth
The uplift was driven by strong uptake of electrified vehicles. Registrations of pure battery electric new cars surged by 44.5% compared with July last year, when demand was subdued ahead of incoming grants. This growth was attributed to a wide choice of models, Government purchase incentives, and heavy discounting by manufacturers.
Industry concerns over sustainability
SMMT chief executive Mike Hawes said: “July’s record EV performance is a great achievement, reflecting industry’s huge investment in zero emission mobility. But that progress cannot be sustained if manufacturers continue haemorrhaging billions in EV discounts, distorting demand to avoid even steeper penalties. The sector’s commitment to decarbonisation is not in doubt but its ability to remain viable – and attract investment for an EV future – is under intense pressure. We need urgent reform of the regulation, else Britain risks undermining its competitiveness and the jobs and livelihoods that depend on this industry.”
The Government's zero emission vehicle (Zev) mandate requires that at least 33% of new cars sold by each manufacturer this year be zero emission, which generally means fully electric.
Consumer demand and market outlook
Ian Plummer, chief customer officer at online vehicle marketplace Autotrader, said: “The new car market looks well on course for its best year since 2019 as strong competition between manufacturers helps improve affordability and pull consumers back into the market. The Gulf conflict has focused the minds of car buyers on lower cost motoring options, so demand remains particularly strong for electrified vehicles. For the first time, one in every two new car inquiries on Autotrader in July went to a plug-in car, showing that they are now a mainstream choice for UK car buyers.”
