The UK new car market has revved up with a 2.5 per cent boost in July, marking two years of continuous growth. According to the latest figures from the Society of Motor Manufacturers and Traders (SMMT), 147,517 shiny new cars hit the roads in Britain last month, making it the best July since 2020. Back then, showrooms were re-opening like pop-up lemonade stands after a four-month lockdown, quenching the public's thirst for new rides.
However, this growth wasn’t driven by Sunday drivers or car enthusiasts but by the fleet sector, which saw registrations zoom up by 13.0 per cent, grabbing a hefty 62.0 per cent market share. Private demand, meanwhile, slumped, dropping 11.1 per cent and making up just 36.2 per cent of July's new deliveries. The rise of salary sacrifice schemes seems to be the sneaky culprit behind this decline.
UK's best-selling models in July 2024:
- Kia Sportage - 3,999
- Nissan Qashqai - 3,633
- Ford Puma - 3,418
- Volvo XC40 - 3,055
- VW Golf - 3,009
- Hyundai Tucson - 2,917
- VW T-Roc - 2,578
- Nissan Juke - 2,553
- VW Polo - 2,541
- MG HS - 2,445
“Overall, July marked another lacklustre month for the new car market, as the strong performance in fleet channels struggled to offset the ongoing retail decline. The bright spot is a strong consumer move to low-emission cars, which so far this year have accounted for almost half of all new car sales, up from around just one in ten in 2019,” Ian Plummer, Commercial Director at AutoTrader, commented.
Electrified vehicles are stealing the spotlight, with nearly four out of ten (42.0 per cent) new cars registered in July sporting some form of electric wizardry. Hybrid electric vehicles (HEVs) jumped by a zippy 31.4 per cent to capture a 14.5 per cent market share, while plug-in hybrids (PHEVs) grew by 12.4 per cent, snagging 8.9 per cent of the registrations. Battery electric vehicles (BEVs) also had a jolt, increasing by 18.8 per cent and grabbing an 18.5 per cent market share.
UK’s best-selling models year-to-date:
- Ford Puma - 29,792
- Kia Sportage - 28,138
- Nissan Qashqai - 26,514
- VW Golf - 22,045
- Nissan Juke - 21,982
- Audi A3 - 20,549
- MG HS - 19,175
- Hyundai Tucson - 19,099
- BMW 1 Series - 19,037
- VW T-Roc - 18,245
While the recent interest rate cut provided a glimmer of hope, industry insiders are crossing their fingers for more cuts to make financing these eco-friendly rides more affordable. So, while the car market's engine is still running, it's clear that a little tune-up might be needed to keep the momentum going.
“Two years of new car market growth against a backdrop of a turbulent economy is testament to the sector’s resilience and the attractiveness of the deals on offer. Weakening private retail demand, however, particularly for EVs and despite generous manufacturer discounts, is the over-riding concern,” Mike Hawes, SMMT Chief Executive, said.
Sales reports for previous months:
In July, the Kia Sportage was the best-selling model with 3,999 deliveries, ahead of the Nissan Qashqai (3,633) and Ford Puma (3,418). The Blue oval's crossover, meanwhile, retains its crown as the best-seller for the year so far with 29,792 sales, followed by the Sportage (28,138) and the Qashqai (26,514).
UK new car sales, July 2024
Source: SMMT