New car registrations increase by a quarter in June
Positive figures show industry is beginning to overcome long-running supply-chain issues.
New car registrations increased by 26 per cent in June, recording to the 11th consecutive month of growth, according to new figures released today.
According to the Society of Motor and Manufacturers (SMMT), 177,266 new cars were registered in June – a 25.8 per cent increase from the previous year. Increased demand from fleets is behind the sharp increase, accounting for 92,699 registrations – a 37.9 per cent jump.
Total car registrations for the first six months of 2023 stand at 949,720 units – an 18.4 per cent increase on the same period in 2022. The SMMT says this demonstrates the industry is ‘gradually overcoming the pandemic-induced supply chain shortages’, which have caused car manufacturers and consumers headaches in the past two years.
Demand for vehicles of all fuel types increased in June, with the exception of diesel. Electric vehicle registrations rose by 39.4 per cent to 31,700 units, with these models now accounting for 17.9 per cent of new cars sold. It now makes it the second most popular fuel type, after petrol, which still has a 56 per cent share of the market.
Despite this, the SMMT says that it is businesses and fleets that are driving EV growth, rather than private buyers and that ‘more could be done’ to help car buyers choose electric models. The SMMT is therefore calling for a VAT cut on public EV charging to be cut to help those that aren’t able to charge an electric car at home.
Mike Hawes, SMMT chief executive, said, “The new car market is growing back and growing green, as the attractions of electric cars become apparent to more drivers. But meeting our climate goals means we have to move even faster.
“Most electric vehicle owners enjoy the convenience and cost saving of charging at home but those that do not have a driveway or designated parking space must pay four times as much in tax for the same amount of energy.
“This is unfair and risks delaying greater uptake, so cutting VAT on public EV charging will help make owning an EV fairer and attractive to even more people.”
Tesla’s electric Model Y was also the most popular new car overall in June, with 5.539 registrations. It was followed by the Ford Puma (5,453) and Vauxhall Corsa (4,146).
