WE might be in the ‘new normal’, but it’s the same old patterns for UK car sales with August upholding its reputation as a typically quieter month for new car registrations, with sales falling both month on month and year on year.
According to the latest figures from the Society of Motor Manufacturers and Traders (SMMT). 68,033 units were registered, the weakest since August 2013, and down 7.6% against the average recorded over the last decade, due in part to constrained supply as the global shortage of semiconductors, an issue born of the pandemic, continues to undermine production volumes.
Karen Johnson, Head of Retail and Wholesale at Barclays Corporate Banking, said: “Although there continue to be positive reports of strong used car sales, dealers across the country will already be looking ahead and wondering how much the shortage of new vehicles is going to impact registrations in September?”
Demand for the latest battery electric (BEV), hybrid (HEV) and plug-in hybrid (PHEV) vehicles, however, surged, up 32.2%, 45.7% and 72.1% respectively. In fact, demand for PHEVs has outpaced BEVs in five of the last six months since changes to the Plug-in Car Grant, affecting BEVs, were introduced in March. There are now some 130 plug-in models on the market, with the range ever-increasing.
Meryem Brassington, electrification propositions lead at Lex Autolease said: “The growth in electric and hybrid vehicles is encouraging as ever. The journey to move towards net zero is set to be strengthened even more with the closing of a Government consultation later this month to set the bar on how environmentally friendly a hybrid vehicle has to be to remain on sale post-2030.
Appointed Representative Opportunities with Wessex Fleet
Have you thought about growing your broker business? Are you looking for opportunities for growth? Then why not consider joining Wessex Fleet as an Appointed Representative?
Keeping you on the move with leasing solutions tailored to your needs
Leasys is the proud Contract Hire partner of the Stellantis brands, offering mobility solutions from medium and long-term rentals to management systems for company fleets.We work with Brokers to support all their customers requirements.
Accelerate your business with QV Systems & Leaselink
Unlock unparalleled efficiency in vehicle procurement with QV Systems’ Accelerate, now seamlessly integrated with Ebbon Automotive’s Leaselink. Tailored for brokers and funders, this integration streamlines the entire process from quote to delivery, empowering you to effortlessly source and order vehicles for your clients.
“These positive changes will be crucial to ensuring that even more of the vehicles on the UK’s roads post 2030 are genuinely sustainable and contributing towards the UK’s net zero ambitions.”
Lucy Simpson, head of EV enablement at Centrica Business Solutions, added: “Despite the downturn in overall registrations, it’s encouraging to see EV adoption continue to go from strength the strength, with battery and plug-in hybrid vehicles accounting for 30% of the new car market.
“With the 2030 phase-out date for the sale of new petrol and diesel vehicles now firmly set in stone, encouraging EV uptake needs to remain our top priority. The government’s recent Transport Decarbonisation Plan and other commitments have put down a strong marker for the UK’s electrification journey, however we must ensure that EVs remain accessible for all. This includes speeding up the roll-out of on-street charging to avoid large swathes of the population being left behind on the road towards an electric future.”
James Fairclough, Chief Executive of AA Cars said that with both the economy and consumer confidence recovering well, motorists are steadily returning to forecourts and the new registration plates should give the market an additional lift in September.
He added: “But the mismatch between customer demand and the constrained supply of new cars for sale means much of the action has shifted to the second-hand market, where buyers can traditionally get a nearly-new car for significantly less money than a new one.
“On the front-line we’re seeing the used market perform very well, but we always recommend that an independent pre-sale vehicle inspection takes place on any second-hand car before any money changes hands, to ensure drivers can have peace of mind that there are no hidden faults which will cost them money down the line.”
Thinking of the switch to electric?
Need help in finding the right electric vehicle for you? Compare driving range, battery capacity, charging time, price, and features to find the perfect EV for you.