NEW car registrations grew 1.7% in November, bringing an end to four months of consecutive decline although the Society of Motor Manufacturers and Traders (SMMT) said this should be viewed in the context of a weak 2020, when lockdowns impacted registrations, including November.
Last month saw 115,706 units registered compared to the same period last year and compared to the pre-pandemic average, the market remains down significantly, with 31.3% fewer vehicles registered during the month.
Plug-in vehicle demand continued to grow with battery electric vehicles (BEVs) equating to 18.8% of the market, with 21,726 units – more than double compared with November 2020 – while plug-in hybrid vehicles’ (PHEVs) share grew to 9.3% or 10,796 units.
Meryem Brassington, electrification propositions lead at Lex Autolease said: “The rise of electric vehicle registrations has continued to make inroads in the new car market this year, with today’s figures taking the total number of EVs registered to more than 163,000 – already surpassing the 108,000 electric vehicles registered in 2020.
“While the continued growth is encouraging, there’s still a long way to go to achieve the UK’s ambitious electrification plans, with charging infrastructure investment firmly at the top of the agenda. The government’s latest requirement to install charge points in new homes and buildings from next year is another welcome step in the right direction. By ensuring the product supply and supporting charge network is in place, we can continue to accelerate the transition towards a zero emission future.”
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Karen Johnson, Head of Retail and Wholesale at Barclays Corporate Banking, said that the used car market remained particularly strong. She added: ““As we enter the festive period, second-hand car dealers will have the Christmas music on full blast – as impressive sales volumes for used vehicles generate plenty of festive cheer.
“Unfortunately, the sounds coming from forecourts around new car registrations are much more muted. Production and supply issues continue to persist across the industry, whilst questions around the Omicron variant have added another layer of uncertainty to an already complicated situation.
“Consumer demand for vehicles hasn’t gone away, but the exact decisions they’ll make around their future modes of transport are still up in the air. Alternative electric vehicle sales are providing some hope for the industry – with registrations in Battery Electric Vehicles rising by more than 110% versus 2020 – but there’s a long way to go before this modest sector of the market generates enough business to keep dealers singing sweetly.”
James Fairclough, CEO at AA Cars believes the tide is finally turning for new car sales with forecourts gradually getting busier and many dealers are working overtime to get cars to customers who have already placed orders. But the patchy supply of new vehicles continues to peg back the number of sales dealers can make.
He said: ““Stock levels of certain models are so low that some dealers are even struggling to offer test drives, let alone fulfil customer orders in anything less than several weeks.
“The one silver lining is that the problem is the lack of vehicle supply rather than the lack of customer demand. But the cloud is that the supply issues could get worse before they get better.
“In recent months the number of new cars rolling off UK production lines has collapsed to its lowest October level in 65 years. Car factories in other countries have been similarly affected as the global shortage of semiconductors means vehicle production is being held back everywhere.
“Meanwhile changing customer tastes are reshaping the market. Plug-in vehicles have accounted for more than one in six cars registered in 2021 – that’s close to double their market share of last year and nearly double the number of diesels sold.
“Steadily rising fuel prices in November, coupled with the buzz around the COP 26 summit in Glasgow, may have given EV sales a further lift last month – encouraging many buyers who had already been considering going electric to bring forward their decision.
“However, rather than face a long wait for a new model, thousands of motorists are choosing to focus on the second-hand market instead, where availability is significantly better. On the AA Cars website we’ve seen a surge of interest in used vehicles that are available to drive away today.
“While used car prices have risen over the past year, there are still some very good deals to be had. However 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 could cost them money down the line.”
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