UK new car market continues recovery but EV outlook drops

The UK car market achieved its ninth consecutive month of growth in April, according to the Society of Motor Manufacturers and Traders (SMMT), with easing supply-chain pressures supporting the best start to a year since before the pandemic. 

In total, 132,990 new cars were registered last month, an increase of 11.6% year on year and the best April performance since 2021, when 141,583 units were sold. However, the industry is still 17.4% down compared with 2019. 

The SMMT has attributed the month’s positive performance to the ever-improving supply chain. It has also increased the projected outlook for 2023 by 40,000, up from 1.79 million to 1.83m. 

Should the UK hit that target, it would represent growth of 13.5% - the biggest percentage gain since 1983. 

Much of April’s growth was down to an increase in large fleet registrations, which grew by 33.1% year on year to 33.1% to 68,537. Private registrations dropped by 5.5%, while smaller business fleet sales increased by 13.3%.

Electric vehicles retained their position as the second most popular fuel type in the UK, with 20,522 delivered - an increase of 59.1% year on year – to claim a 15.4% share of the market. 

Petrol cars continue to dominate the market, with a 42.6% share, while diesel uptake continues to drop.

The SMMT warned that EV growth could drop in future months, however, downgrading its 2023 market-share projection from 19.7% to 18.4%. This, it said, is down to increasing energy costs and the lack of strong public charging infrastructure. 

“The new car market is increasingly bullish as easing supply-chain pressures provide a much-needed boost," said SMMT chief Mike Hawes. "However, the broader economic conditions and charge-point anxiety are beginning to cast a cloud over the market’s eagerness to adopt zero-emission mobility at the scale and pace needed. 

“To ensure all drivers can benefit from electric vehicles, we need everyone – government, local authorities, energy companies and charging providers – to accelerate their investment in the transition and bolster consumer confidence in making the switch.”

The SMMT also tempered its prediction for EVs' 2024 market share from 23.3% to 22.6%. 

The Ford Puma was the best-selling car in April. The Vauxhall Corsa tops the charts for the first four months of the year.