New car registrations have risen for the sixth straight month, as strong sales of hybrid electric vehicles and large fleet interest for cars fuelled demand – but the rollout of charging points is not keeping pace, the industry has warned.
The Society of Motor Manufacturers and Traders (SMMT) said new car registrations in January rose 14.7 per cent year on year, to 131,994 units. It is the UK car industry’s best start to a year since January 2020.
Hybrid electric vehicles (HEVs) comprised 14.4 per cent of new car registrations. But battery electric models made up only 13.1 per cent, compared with an annual share of 16.6 per cent in 2022.
Industry experts expect plug-in vehicles to comprise more than a quarter of total new registrations this year, up 32 per cent on the last.
However the rollout of the charging point infrastructure that is needed to keep vehicles moving is failing to keep pace, the SMMT warned. Last year, one public charger was installed for every 53 new plug-in cars registered – the weakest ratio recorded since 2020.
Mandating rollout targets for chargers and imposing public charging service standards would give drivers certainty that they can always find a working available charger, the SMMT said. Otherwise, “poor provision risks delaying the electric transition” it added.
Mike Hawes, the SMMT’s chief executive, said: “The automotive industry is already delivering growth that bucks the national trend and is poised, with the right framework, to accelerate the decarbonisation of the UK economy.
“We look to a Budget that will reaffirm the commitment to net zero and provide measures that drive green growth for the sector and the nation.”
Jamie Hamilton, at Deloitte, said: “Car sales have remained strong at the start of the year, with month-on-month new registrations up 14.7% in January. With around one in 20 UK consumers planning to purchase a car in the next three months, high consumer demand could carry through the rest of the year.
“Having reached a monthly record in sales in December, electric car sales remain strong with market share this month standing at 20 per cent. “
He said that having the infrastructure in place to meet EV charging demand is still a challenge, and would be key to making EV ownership mainstream. “Simplifying access to charge points, particularly for those consumers without off-street parking, will be important for continued growth,” he added.
“Consumers often cite price as one of the main barriers to switching to EVs so reducing this, at the same time as improving charging infrastructure access and availability, will make electric vehicle ownership more feasible.”
More from Business
Chris Knight, at consultants KPMG, said the new registration figures were a sign of the car market picking up. “Car makers have enjoyed a period of higher profits due to the low availability of new cars, which has also increased used car values,” he said.
“As supply issues gradually resolve, combined with a reduction in household spend for the majority of buyers, we’re seeing a more competitive landscape and a return to better deals and discounting in the new car market. This is also cooling used car values.
“We expect to see a plethora of new auto brands launch in the UK in the coming months, further increasing consumer choice at all budget levels.”
Meanwhile, German car maker BMW is negotiating a £75m grant from the Automotive Transformation Fund to guarantee production of electric Minis at its Oxford plant, it was reported.
Last October, BMW said the production of its hatchback and small SUV electric Minis would move to China. The electric Countryman would start being made in its factory in Leipzig, Germany.
