UK’s new car market leaves pandemic in the past with 18 per cent growth in 2023
The number of new car registrations in the UK grew by nearly 18 per cent in 2023, as the automotive industry left pandemic-era supply chain issues firmly in the rearview mirror.
Around 1.9m cars entered the market in 2023, according to data from the Society of Motor Manufacturers and Traders (SMMT).
While this was still 17.7 per cent below pre-pandemic levels, it marks a significant upturn since the global semiconductor crisis pummelled the sector after COVID-19. Some 1.97m new cars are forecast to be registered in the UK in 2024.
The SMMT said growth was driven entirely by business investment into fleets, as the previous year’s supply constraints faded and helped fulfil pent-up demand. Fleet deliveries bounced back by 38.7 per cent year on year, while private demand remained stable at 817,613 units despite high-interest rates and cost of living pressures.
Battery electric new cars reached record volumes of 315,000 units as automakers continue to prioritise shifting to greener fleets, but market share largely levelled out in the prior year, at 16.5 per cent.
Mike Hawes, the SMMT’s chief executive, said: “With vehicle supply challenges fading, the new car market is building back with the best year since the pandemic.”
“Energised by fleet investment, particularly in the latest EVs, the challenge for 2024 is to deliver a green recovery.”
On Wednesday, new rules were introduced by the Department for Transport (DfT), which require at least 22 per cent of new cars sold this year by manufacturers to be zero-emission. The requirement will scale up each year, eventually reaching 100 per cent in 2035.
“Government has challenged the UK automotive sector with the world’s boldest transition timeline and is investing to ensure we are a major maker of electric vehicles,” Hawes said.
“It must now help all drivers buy into this future, with consumer incentives that will make the UK the leading European market for ZEVs.”
The number of EVs on British roads is forecast to hit one million for the first time this month, according to the RAC. However, there are concerns that the high-interest rate climate could dampen demand over the coming year, given the higher cost of electric makes.
The government has also come under fire for a lagging roll-out of charge point infrastructure. The RAC revealed earlier this week it had missed a target of having at least six rapid or ultra-rapid chargers at every motorway station by the end of 2023.