EY UK is predicting another strong year of growth in the new car market, after the Society of Motor Manufacturers and Traders reported that sales grew a further 8.2% in January to 142,876 registrations.
Commenting on the figures, David Borland, EY UK & Ireland Automotive Leader, said, “The growth was predominantly driven by BEV registrations, which were up 21% year-on-year, and PHEV registrations, which were up 31.1% compared to January 2023.
“Despite the growth in BEV sales and the cumulative milestone of one million sales in the UK being reached, the market share for BEVs was down to less than 15% for the first time in a year last month. This highlights the challenge that manufacturers have to meet the target of ensuring at least 22% of their sales are accounted for by Zero Emissions Vehicles (ZEVs) as part of the ZEV Mandate, which came into law at the start of this year.”
He continued, “There is positive news on the supply side as well with manufacturing growth for 2023 at 17%, representing the best year since 2019. The deferral of the ‘rules of origin’ legislation will provide further impetus to automotive manufacturing, in the UK and continental Europe.
“While the new year will undoubtedly present economic and regulatory challenges, the market is showing robust momentum as it heads into 2024 with further volume increases forecast for the year. This upward trend, coupled with the intensified competition from new market entrants, positions 2024 as another year of opportunity for the UK car industry to demonstrate its resilience and innovation.”
