The Society of Motor Manufacturers and Traders has reported that the UK new car market rose by 1.2% in August, with 68,858 new vehicles joining the roads.
However, while this represents the first growth month since February, August volumes were the lowest since 2013 (bar 2021) and mean year-to-date registrations are still down 10.7% on last year and 35.3% lower than the first eight months of pre-pandemic 2019.
Electric vehicles remain a source of optimism for the industry, with August growth recorded at 35.4% to see them occupy a 14.5% market share. Although here too the recovery is stalling, with year-to-date increases now at 48.8% compared to the 101.9% growth rate recorded in the first quarter.
Meanwhile, the UK light commercial vehicle (LCV) market fell by 24.6% to 15,520 units last month, meaning this sector has now experienced an entire year of decline.
Mike Hawes, SMMT Chief Executive, said, “August’s new car market growth is welcome, but marginal during a low volume month. Spiralling energy costs and inflation on top of sustained supply chain challenges are piling even more pressure on the automotive industry’s post-pandemic recovery, and we urgently need the new Prime Minister to tackle these challenges and restore confidence and sustainable growth. With September traditionally a bumper time for new car uptake, the next month will be the true barometer of industry recovery as it accelerates the transition to zero emission mobility despite the myriad challenges.”
