The latest car market overview produced by cap HPI has revealed an automotive industry in recovery mode.
Figures published by the Society of Motor Manufacturers and Traders (SMMT) found that sales in April were up 11.6% on the same month last year to 132,990 units, while sales for the first four months of the year are 16.9% higher than in 2022.
This is being driven partly by demand for battery electric vehicles, which has increased by 59.1% and 25.6% for April and the year to date respectively. BEVs now make up 15.4% of the overall car market in the UK.
Demand for used cars also remains healthy, with retailers reported a stronger than expected demand in the first three months of 2023. A softening in the market is April and May has been attributed to the Easter Break, Bank Holidays and the King’s coronation.
However, used car values have only dipped slightly despite this, falling one per cent in April and 1.2% in May.
Electric vehicles are facing a sharper drop off though, falling by 4.1% (£850) at the three-year point in May, and by 3.1% (£1,100) at the one-year point.
The report said, “Demand remains steady, with volumes well below pre-2020 seasonal norms, even though new car registrations are generating more used cars this year compared to last. The uncertainty of the May Bank Holidays will not be repeated, which could lead to an uptick in activity.
“A further small average deflation in values is likely, but we are not predicting anything untoward.”
