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New Car Registrations Rise by 16.7% in May, Fueled by Fleet Sales

June 09, 20232 min read

New car registrations in May showed a promising 16.7% increase overall, according to the latest data from the Society of Motor Manufacturers and Traders (SMMT). However, the private market experienced a slight decline of 0.5%, while fleet sales surged with a growth rate of 36.9%. The electric vehicle (EV) segment witnessed substantial growth, with battery electric vehicles (BEVs) leading the charge with a remarkable increase of 58.7% to 24,513 units. Plug-in hybrid (PHEV) registrations also rose by 23% to 9,025 units, followed closely by hybrids (HEVs) with a growth rate of 22.2% to 17,792 units. In comparison, diesel registrations decreased by 24.4%, while petrol registrations increased by 5.3%.

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The National Franchised Dealers Association (NFDA) CEO, Sue Robinson, highlighted the strong sales growth across electric vehicles, hybrids, and petrol vehicles for franchised dealers. She emphasised that this positive trend is expected to continue during the summer months. Robinson also identified charging infrastructure as a critical issue that requires attention on the showroom floor, as dealers provide guidance to customers regarding their vehicle choices. The NFDA is collaborating with the UK government and other automotive bodies to address consumer concerns about EVs and support the nation's transition to electric mobility.

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Ian Plummer, commercial director at Auto Trader, expressed satisfaction with the solid sales performance but stressed the importance of substantial order growth in the electric segment for the future success of the new car market. Currently, less than 10% of new car enquiries on Auto Trader are for EVs, indicating the need for sustained momentum in electric vehicle sales. Plummer highlighted the significance of reaching segments of society that have been left behind in the electric transition, particularly women. According to Auto Trader's research, only one fifth of women are considering an EV, compared to a third of men. To achieve the UK government's goal of transitioning to EVs by 2030, there is a need to make EVs more accessible and engage different demographics by providing comprehensive information and addressing current selling points.

You can read the original article here.

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