New car market out of reverse
The UK’s new car market ended five months of decline by recording marginal growth in February, driven by a 34% in alternatively fuelled vehicles.
It was up 1.4%, according to the latest figures released by the Society of Motor Manufacturers and Traders (SMMT). It found that 81,969 new cars were registered on UK roads in the month (a year on year uplift of 1,164 units), traditionally one of the quietest of the year, ahead of the crucial March plate change.
The surge in demand for alternative fuelled vehicles marked the 22nd consecutive month of growth for the segment as new and existing cutting-edge models attracted buyers into showrooms. Registrations of zero-emission electric cars enjoyed particular growth, more than doubling to 731 units, although they still accounted for less than one per cent of the market (0.9%).
Meanwhile, in the four months since the October 2018 reform to the Plug-in Car Grant, the market for plug-in hybrid electric vehicles (PHEVs) has only grown by 1.7%, compared with 29.5% over the first 10 months of 2018.1 This suggests that removing the incentive for PHEVs is having an adverse effect.
Mike Hawes, SMMT chief executive, said, ‘It’s encouraging to see market growth in February, albeit marginal, especially for electrified models. Car makers have made huge commitments to bring to market an ever-increasing range of exciting zero and ultra low emission vehicles and give buyers greater choice. These cars still only account for a fraction of the overall market, however, so if the UK is to achieve its electrification ambitions, a world-class package of incentives and infrastructure is needed.
‘The recent removal of the plug-in car grant from plug-in hybrids was a backward step and sends entirely the wrong message. Supportive, not punitive measures are needed, else ambitions will never be realised.’
The news comes as vehicle manufacturers launched some 14 all-new electric and plug-in models to a global audience at the Geneva Motor Show. Already there are around 40 plug-in models on the market in the UK, with more than 20 more expected to arrive in showrooms in 2019.
