Car market sees seventh consecutive month of growth

It comes despite the fact the month usually has lower volumes ahead of the March plate change, with the increase driven by easing supply chain shortages. This has, in turn, steered the market closer to pre-pandemic levels – down just -6.5% on the same month in 2020.  

The month also saw almost universal growth across the market, with deliveries to private buyers up 5.8%, and those to large fleets up 46.2%. Additionally, business registrations increased by 0.7%. 

Overall, there was growth in all but two segments – with only registrations of executives and luxury saloon cars falling – dropping by -15.4% and -6.3% respectively. Those that reported the largest uplifts were minis – up 66.1% – multipurpose vehicles – 41.9% – and superminis – 37.7%. 

Additionally, hybrid electric vehicles recorded the most significant growth of all fuel types – up by 40% – followed by petrol, which went up to 35.8% with a 56.9% market share. Diesel car registrations, however, fell by -7%. 

Meanwhile zero emission vehicles continued their upward trend, with plug-in hybrids rising by one percent and battery electric vehicles up 18.2% – with this now accounting for one in six new UK car registrations. Combined this accounted for 22.8% of all deliveries in the month, with 488,000 expected to join the roads in 2023 as manufacturers bring more than 40 new models to the market.  

The SMMT’s chief executive Mike Hawes said: “After seven months of growth, it is no surprise that the UK automotive sector is facing the future with growing confidence.  

“It is vital, however, that government takes every opportunity to back the market, which plays a significant role in Britain’s economy and net zero ambition. As we move into ‘new plate month’ in March, with more of the latest high-tech cars available, the upcoming budget must deliver measures that drive this transition, increasing affordability and ease of charging for all.”