Sales of both new cars and light commercial vehicles were up in December to cap off a strong year, according to data from the Society of Motor Manufacturers and Traders.
The new car market increased by 9.8% in December and 17.9% for the year to 1.903 million units, while December sales of LCVs surged by 36% to secure annual growth of 21% to 341,455 units.
Battery electric vehicles also continued to perform strongly in both segments. In the car market BEV sales increased to 314,687 new registrations, which is more than 2021 and 2022 combined, while the LCV segment recorded a 21% increase for the year.
Despite these strong figures, there are signs that demand for BEVs is slowing with sales falling in both November and December.
David Borland, EY UK & Ireland Automotive Leader, said, “The disparity between the timing of the ZEV Mandate and the delay to the ICE vehicle sales ban will continue to represent one of the most marked challenges to the UK’s EV transition going forward, as OEMs attempt to provide a more compelling proposition to consumers to make the switch. And with question marks remaining around the residual values of EVs, while the current profitability of EV sales appears stretched, the road ahead will certainly be a complex one.”
