Press release

7 May 2024 Leeds, GB

Resilience continues for auto industry as new car registrations rise again

April is traditionally a quieter month for new car registrations due to the number plate change in March, but last month still delivered 134,274 new car registrations. This marks a modest 1% year-on-year increase and, more significantly, the 21st successive month of growth for the UK auto industry.

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James White

Senior Executive, Media Relations, Ernst & Young LLP

Communications professional experienced in public relations, journalism and media relations. Aston Villa supporter. Passionate about sports and automotive. Former sports journalist.

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David Borland, EY UK & Ireland Automotive Leader, comments on the Society of Motor Manufacturers and Traders (SMMT) new car registration figures for April 2024:

“April is traditionally a quieter month for new car registrations due to the number plate change in March, but last month still delivered 134,274 new car registrations. This marks a modest 1% year-on-year increase and, more significantly, the 21st successive month of growth for the UK auto industry. 

“The performance is testament to the resilience the automotive industry has consistently shown in recent times, despite a complex backdrop characterised by an evolving regulatory environment, changing consumer preferences, supply chain disruptions and an acceleration of net zero targets. 

“However, the challenges facing the sector continue to persist. While Battery Electric Vehicle (BEV) sales were up by 10.7% year-on-year in April, BEVs still only accounted for 16.9% market share last month, lagging behind the 22% target in the Zero Emissions Vehicle (ZEV) Mandate legislation. This was however up from 15.2% in March, representing a step in the right direction. 

“Meanwhile, Plug-in Hybrid Electric Vehicles (PHEVs) continue to be an attractive transition technology, with sales up 22.1% compared to April last year. This shows the increasing willingness of the UK market to reduce its carbon footprint. However, BEV sales growth is nevertheless being stunted by the UK’s limited charging infrastructure, affordability considerations and the fact that the Internal Combustion Engine (ICE) sales ban is still more than ten years away. 

“As with previous months, fleet continues to be the main driving force behind registration volume growth, with an 18.5% year-on-year increase reaffirming that trend in April. In the year to date, fleet now accounts for more than 60% of the overall market share. Conversely, private sales faced challenges once again last month, with a substantial year-on-year decline of 17.7%. High interest rates, combined with persistent cost-of-living challenges and a lack of EV subsidies for private retail consumers continued to play a part. Furthermore, the EV transition remains a more viable and attractive option for consumers with access to home and workplace EV charging, with continued industry calls for VAT to be reduced on public charging.

“Removing some of the barriers to BEV accessibility for private consumers presents a significant opportunity for whoever forms the next Government, particularly given the increasing importance of BEV market share as Original Equipment Manufacturers (OEMs) navigate ZEV Mandate regulations. However, there remains a complex road ahead, as these challenges will require significant investment to help drive EV adoption.”