By Guy Taylor
The new car market rose 9.5 per cent last month to mark the best November in four years, with registrations nearing a return to pre-pandemic levels.
Some 156,525 new cars were registered, just 0.1 per cent down on 2019, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).
Depressed private and business demand, down 5.9 per cent and 32.7 per cent respectively, failed to offset overall growth, with the market sitting up 18.6 per cent in the year to date.
But ahead of looming post-Brexit trade tariffs, which come into effect at the turn of the year, battery electric vehicle (BEV) volumes fell 17.1 per cent, leading to a reduced market share of 15.6 per cent.
Mike Hawes, SMMT Chief Executive, said: “Britain’s new car market continues to recover, fuelled by fleets investing in the latest and greenest new vehicles.”
“With car makers gearing up to meet their responsibilities under new market legislation, and COP28 currently underway, now is the time to take sensible steps that will multiply that economic growth and minimise carbon emissions.”
He added: “Private EV buyers need incentives in line with those that have so successfully driven business uptake – and workable trade rules that promote rather than penalise the transition.”
So-called rules of origin tariffs will impose a 10 per cent fee on electric makes traded between the UK and European Union (EU) from January if a set proportion of parts are not sourced from either region.
The automotive industry is concerned this will damage British production at a time when countries are aggressively competing to steal market share in the rapidly growing electric market.
A slew of automakers, including Nissan, Jaguar Land Rover and Vauxhall owner Stellantis, have pledged investments totalling billions in the UK’s EV sector this year.
Yet the UK government has come under fire for casting doubt on the transition through policies including pushing back a ban on the sale of new petrol and diesel vehicles.
Ian Plummer, commercial director at Auto Trader, warned: “November’s drop in electric vehicle sales is a sign of what’s to come if the government doesn’t support the industry in making the transition by incentivising consumers on this journey as we know private electric car registrations have been lagging that of the fleet sector for a while now.”
Additionally, Jamie Hamilton, automotive partner and head of electric vehicles at Deloitte, said: “In a month where we’ve seen significant announcements in the UK supporting electric vehicle (EV) production, the decline in sales of battery electric vehicles in November is a reminder that we also need to think about demand and the underlying charging infrastructure that’s required for consumer adoption.
“More clarity on residual values and better second-hand car market for EVs will also help boost demand for new cars.”
