UK's July new car sales hit best since 2019, SMMT data shows
Record Growth in New Car Registrations and Electric Vehicle Market
Strong Performance in July
Aug 5 (Reuters) - British new car registrations rose nearly 12% in July, marking their best performance since 2019 as battery electric vehicle (BEV) sales reached another record, industry data showed on Wednesday.
Factors Driving EV Sales
Market and Economic Influences
EV sales have been supported by higher fuel prices following the Iran war, a wider choice of lower-cost models, government grants and manufacturer discounts.
Challenges to Sustained Growth
Growth, however, remained below the pace needed to meet the government's targets on the path to net zero.
SMMT Data and Industry Response
Sales Figures and Market Share
The Society of Motor Manufacturers and Traders (SMMT) said 156,571 units were sold in the month, up 11.7% from last year with BEV market share reaching 27.5%.
Manufacturer Strategies and Concerns
While automakers have been pushing to meet government targets for EV sales, heavy discounts to offset slow demand and avoid compliance costs have pressured the manufacturers.
Industry Statement
"July’s record EV performance is a great achievement, reflecting industry’s huge investment in zero emission mobility. But that progress cannot be sustained if manufacturers continue haemorrhaging billions in EV discounts, distorting demand to avoid even steeper penalties," SMMT CEO Mike Hawes said in a statement.
Future Outlook for BEV Market Share
Forecasts and Mandate Targets
The body uplifted its BEV market share forecast for 2026 to 27.4% of the total cars sold, up from the 26.8% it had guided to in April, but still behind the 33% mandate target.
BEVs market share is now expected to hit 32.1% in 2027, trailing mandate target of 38%.
Comparison of Data Sources
Data from New Automotive released on Tuesday, showed BEV market share had reached 27.4% in July. The two bodies use different data sources and calculation methods.
Reporting Credits
(Reporting by Prerna Bedi in Bengaluru; Editing by Nivedita Bhattacharjee)
