October’s new automobile market grew by 14.3% to succeed in 153,529 registrations, 7.2% above pre-pandemic ranges and marking the perfect efficiency for the month since 2018,1 in keeping with the newest figures from the Society of Motor Producers and Merchants.
The fifteenth month of consecutive progress was pushed nearly fully by massive fleet registrations, which grew 28.8% to succeed in 87,479 models. Non-public demand was secure at 62,915 automobiles, a 0.3% improve, whereas the a lot smaller enterprise sector noticed registrations fall -15.2% to three,135 models. With the sustained improve in new automobile registrations, total automobile uptake is now up 19.6% within the first 10 months, with the market presently having fun with its finest 12 months since 2019.
Electrified automobile uptake continued to speed up in October accounting for 37.6% of all new automobile registrations. Hybrid electrical automobiles (HEVs) grew 24.6% to succeed in 19,574 models, whereas plug-in hybrid automobiles (PHEVs) recorded the very best proportional progress, up 60.5% to 14,285 registrations. Battery electrical automobile (BEV) uptake elevated for the forty second month in a row, by 20.1% to 23,943 models.
Given total market progress, nonetheless, this amounted to a BEV market share of 15.6%, a comparatively small rise from final 12 months’s 14.8%. Moreover, non-public registrations accounted for fewer than one in 4 new BEVs this 12 months, underscoring the necessity for fiscal incentives for personal customers. 12 months to this point, BEV volumes have risen 34.2% to account for 16.3% of latest registrations this 12 months, up barely from 14.6% this time final 12 months.
October’s plug-in automobile efficiency follows a big improve in chargepoint rollout in Q3, which improved considerably relative to new plug-in automobile uptake. 4,753 new customary chargepoints got here on-line within the quarter, the biggest ever quarterly supply. This equates to at least one new customary public chargepoint being put in for each 26 new plug-in vehicles reaching the highway between July and September, improved from 38 in the identical quarter final 12 months.
Nevertheless, set up was disproportionately targeted on London and the South East, which obtained 4 out of 5 new chargepoints commissioned through the quarter – regardless of the area accounting for fewer than two in 5 new plug-in registrations throughout the identical interval. Compared, simply 13 chargers had been put in in Yorkshire and Humberside, whereas the North truly had 105 chargers taken out of service.
With EV uptake enormously influenced by perceptions of chargepoint infrastructure availability and accessibility, motion needs to be taken to make sure extra equitable distribution and pricing for public charging. Lowering VAT on public charging to match dwelling use would imply these unable to put in their very own chargepoint – sometimes these in flats, terraces and rented lodging – would keep away from paying 4 occasions the tax paid by those that can – sometimes those that personal homes with off-street parking. Binding targets for chargepoint rollout, in step with these set for the automobile market by the Zero Emission Car Mandate and supported by the required adjustments to planning and grid connections so desperately wanted, would additionally assist speed up set up, giving customers confidence in having the ability to cost when and the place wanted.
Mike Hawes, SMMT Chief Government, mentioned, “With demand for brand spanking new vehicles surpassing pre-pandemic ranges within the month, the market is defying expectations and driving progress. As fleet uptake prospers, notably for EVs, sustained success depends upon encouraging all customers to spend money on the newest zero emission automobiles. The Autumn Assertion is a key alternative for presidency to introduce incentives and facilitate infrastructure funding. Doing so would ship a transparent sign of help for drivers, reassuring them that now could be the time to change to electrical.”
The newest market outlook has been revised upwards to mirror market progress larger than anticipated. Total new automobile registrations are anticipated to succeed in 1.886 million by the top of the 12 months, an increase of two.1% on July’s expectations. Nevertheless, expectations for BEV uptake have been downgraded once more barely, by -1.7% to 324,000 models leading to an anticipated market share at 12 months finish of 17.2%.
Looking forward to subsequent 12 months, the general market outlook for 2024 is marginally extra optimistic than beforehand anticipated, up 1.0% to 1.970 million models (a 4.4% rise on the 2023 outlook). With an absence of shopper incentives and an amazing dependency on fleet registrations for progress, nonetheless, BEV market share outlook has been revised down barely to an anticipated market share of twenty-two.3%, regardless of registrations anticipated to succeed in 439,000 models, a 35.5% improve over 2023.