UK New Car Market Records Second Consecutive Year of Growth in 2024, According to SMMT

The UK new car market is on the rise, with 2024 marking the second consecutive year of growth. According to the latest data from the Society of Motor Manufacturers and Traders (SMMT), nearly 2 million new cars hit the road last year, representing a 2.6% increase from 2023.

What’s interesting is that fleet sales were the driving force behind this growth, accounting for a record six in 10 new car registrations. On the other hand, private new registrations saw a decline, which can be attributed to various factors including the lingering effects of the pandemic.

One of the highlights of the year was the surge in Battery Electric Vehicle (BEV) sales, which made up 31% of the market in December. While BEVs still fell short of the government’s target for 2024, the industry has made significant strides in offering more choice, better range, and increased affordability for consumers.

However, one of the challenges hindering further growth in the EV market is the lack of demand from private buyers. Despite the availability of incentives and a wide range of models, only one in 10 private buyers opted for an EV last year. On the other hand, businesses and fleets showed more interest in BEVs, with a quarter of their registrations being electric vehicles.

Mike Hawes, SMMT Chief Executive, emphasized the need for regulatory support and incentives to sustain the momentum in the EV market. Without adequate support, the automotive industry’s investments and the country’s net zero ambitions could be at risk.

Overall, the growth in the UK new car market in 2024 reflects the industry’s commitment to a decarbonized future. With advancements in technology and increasing consumer awareness, the future looks promising for electric vehicles. Stay tuned for more updates on the automotive industry on our Leadership channel.