The latest Car Market Overview from caps hpi has revealed that both the new and used car segments are performing strongly.
New car registrations rose to 147,678 in May, an increase of 1.7% on the same month the previous year and continuing a 22-month streak of continued growth.
Fleet sales drove the growth, with private registrations falling by 12.9% in the month and down 11.3% in the year-to-date.
In terms of fuel types, the drive to meet the ZEV Mandate through discounts is accelerating demand, with plug-in hybrids (PHEVs) increasing by 31.5% in both the month and the year so far, pure hybrid electric vehicles up 9.6% in the month and 12.6% for the year, and battery electric vehicle sales increasing 6.2% and 12.6% respectively.
However, petrol models continue to dominate sales with a 55.9% market share, although this is down 2.1% on May 2023.
In the used car sector, the optimism that has been evident through the year so far continued into June with average prices down just 0.1% in the three-year, 60,000-mile category. Across the year though, values have increased by 0.2% at the three-year benchmark point.
Demand remains healthy, with diesels selling on average in 42 days, electric vehicles in 41 days, plug-in hybrids in 40 days and pure hybrids in 39 days. Meanwhile, petrol cars are sold on average within 37 days of being advertised.
However, behind the headline figures cap hpi notes that there are retail ‘sweet spots’ for electric vehicles priced below £18,000, with those in the three to five-year category selling in just 33 days. The key take away is that ‘if the price is palatable, BEVs will sell.’
The report said, “There is no reason to predict an end to the strong months experienced so far in 2024. July can often be similar to June, and this year we are not expecting downward moves anywhere near the averages. There is the possibility that there could be a slight average increase in values, but if not, a small movement down should occur, reflecting a positive market.”
