The UK new car market declined by 1.6% in August, but there was a surge in electric car sales in the month, according to data released by the SMMT.
The SMMT data showed a nearly five-fold increase for zero emission electric cars and they took a record 3.4% market share in August.
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The SMMT noted that August is typically one of the smallest months of the year for new car sales, but said that falling demand for diesel and plug-in hybrid vehicles continued to impact the overall market.
Diesel car registrations fell for the 29th month in a row, though at a slower pace than recently experienced (down 12.2%), while petrol demand remained stable, up 1.0%.
Zero emission cars saw the biggest percentage growth, up 377.5%, to 3,147 units as new models and some pent up demand boosted registrations, while 4,014 hybrid electric cars also joined UK roads, an uplift of 36.2%. However, the decline in plug-in hybrid registrations – which have suffered from withdrawn government grants – continued, down 71.8% to just 907 vehicles.
The SMMT noted that in addition to the cleanest-ever petrols and diesels, the UK’s alternatively fuelled offering now includes some 27 hybrids, 27 plug-in hybrids, and 24 zero emission battery electric and hydrogen models.
Mike Hawes, SMMT Chief Executive, said: “August is typically the new car market’s quietest month so the huge increase in EV registrations is very visible but especially welcome. It’s great to see consumers respond to the massive industry investment made over many years. While this is encouraging, these figures also show the scale of the challenge ahead. It’s a long road to zero and while manufacturers can deliver the technology, they can’t dictate the pace of uptake. To support a smooth transition and deliver environmental gains now, we need a long-term government commitment to measures that give consumers confidence to invest in the latest technologies that best suit their needs.”
Michael Woodward, UK automotive lead, Deloitte, noted a “significant change in the type of technology preferred by consumers”. He said: “Electric vehicle (EVs) popularity continues to accelerate with significant growth experienced year-on-year (+378%). As investment in infrastructure is made and more models enter the market, we expect this sector to grow further. This month’s significant increase in EVs reflects an increasing confidence in the technology and poses the question if we are closer than we think to the ‘tipping point’.
“The long-term decline in diesel car sales means that problems are mounting up for manufacturers and their partners. For example, as sales continue to decline, the industry is having to manage a surplus stock of new and used cars.”
Woodward also noted headwinds ahead, including currency movements. “Despite an encouraging month, there are potential headwinds. The value of the pound against the euro has fallen by 16% over the past three years, including a decline of 5% in the last six months. So far, the consumer has been shielded from price rises associated with currency fluctuation, but if the pound continues to decline, manufacturers may be forced to pass on the costs to consumers. If they do this at a time of surplus stock in used cars, this could put a huge dent in demand.”
Industry insiders have told just-auto that Tesla’s Model 3 was the third highest seller in August (at around 2,000 units for the month) as Tesla ramped up deliveries of the model following its UK launch in June.
