In a slight shift for the UK automotive industry, October saw a marginal 0.5% increase in new car registrations, reaching a total of 144,948 units. This data comes from the Society of Motor Manufacturers and Traders (SMMT), highlighting the evolving dynamics of the market.
While fleet registrations dipped by 1.5%, an uptick in private buyer registrations by 2.0% helped balance the scales. Business registrations saw a significant surge of 32.7%, although this market segment’s small size makes it prone to fluctuations.
The growth in electrified vehicles was notable, primarily driven by a 23.6% increase in battery electric vehicle (BEV) registrations, translating to an additional 7,028 units. BEVs now command a 25.4% market share, marking the second-highest rate this year, although it still falls short of the ZEV Mandate’s 28% target.
Plug-in hybrid vehicles (PHEVs) experienced a 27.2% rise, capturing a 12.1% market share, while hybrid electric vehicles (HEVs) grew by 2.1%, securing a 13.3% share. For the second consecutive month, electrified vehicles constituted the majority of new car registrations, accounting for 50.8% of the market.
This moderate growth in October contributes to a year-to-date BEV market increase of 28.9%, totaling 386,244 units – surpassing the entire 2024 figure with two months still remaining. BEVs now represent 22.4% of all new sales, bolstered by substantial manufacturer investments and government initiatives like the Electric Car Grant.
Forecasts for the automotive sector suggest a rebound, with the overall new car market in 2025 projected to exceed two million units for the first time since 2019. BEVs are expected to comprise 23.3% of this market. In 2026, the market could reach 2.032 million units, with BEVs maintaining a 28.2% share. Despite these optimistic figures, they still fall short of future targets, which demand zero-emission vehicles to make up one-third of new registrations by 2026.
The situation could be complicated by government plans to end Employee Car Ownership Schemes (ECOS), which are essential for making vehicles accessible to employees and driving market growth. Ending ECOS could make these vehicles unaffordable for many workers and cut off a vital supply of new, zero-emission cars.
Each year, ECOS contributes around 100,000 cars to the market, roughly 5% of annual new car sales. Ceasing this scheme could stifle growth, impact the nearly-new and used car markets, and risk more than £1 billion in industry revenue and 5,000 manufacturing jobs. The Treasury would also face a half-billion-pound shortfall from lost taxes, negating the benefits of the Electric Car Grant.
Mike Hawes, SMMT Chief Executive, stated, “The government has backed the UK automotive sector with EV incentives and global trade deals, helping drive growth and encourage decarbonisation. But scrapping ECOS would undermine that progress – penalising workers, reducing Exchequer income and putting green investment at risk. At a time when the Budget should fuel growth, the measure will do the exact opposite. It is time for a rethink.”
Original Story at electriccarsreport.com