UK car market sees first million sales since pandemic, driven by hybrids over fully electric vehicles

The UK car market has reached a significant milestone, with new car registrations exceeding one million in the first half of 2024, the first time this has happened since pre-pandemic 2019.

This renaissance includes a significant increase in the market share of electric vehicles. However, sales of plug-in hybrids and gasoline-powered hybrids have outpaced sales of fully electric vehicles.

June figures showed a slight slowdown in overall growth, with 179,263 new vehicles registered – a modest 1% increase compared to June last year. Despite this, the first half of 2024 saw a 6% rise in new car sales compared to the same period last year, with a total of 1,006,763. However, this figure is still 20.7% below 2019 levels.

The data reveals a significant shift in buyer demographics, with private buyers now accounting for a historically low 38% of the market. In contrast, fleet and corporate buyers are taking advantage of financial incentives and subsidies to invest in low-emission vehicles.

Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, praised the market’s continued recovery from the pandemic but warned of challenges ahead. He stressed the need for supportive policies to revive the shrinking private consumer market and accelerate the transition to zero-emission vehicles.

“The private consumer market is still shrinking against a difficult economic backdrop, but with the right policies in place, the next government can revitalise the market and deliver a faster and fairer transition to net zero emissions,” said Hawes. “All parties agree on the need to cut carbon, and replacing old fossil fuel-based technologies with new electric power is the key to achieving this goal.”

Gasoline-only vehicles continue to dominate, but their market share fell to just over 50% in June. Battery-electric vehicles saw sales rise 7.4% in June, accounting for 19% of the market. In the first half of the year, EVs accounted for 16.6% of the market, up slightly from 16.1% in the same period last year.

Market dynamics are being affected by some major brands cutting their petrol vehicle deliveries to boost electric vehicle sales. Ford and Stellantis, which includes Vauxhall, have both cut their petrol vehicle deliveries to avoid fines under the new zero-emissions vehicle mandate, which requires 22% of each manufacturer’s deliveries to be electric by 2024. This has led to a significant drop in sales for both companies.

Tesla, the UK’s historically leading electric car brand, saw its sales fall by around 12%. This was partly offset by increased sales of electric cars from Chinese manufacturers such as MG and BYD, with MG taking around 4.3% of the market and BYD showing strong growth.

Despite these challenges, the market shift towards lower-emission vehicles is clear, with hybrid and plug-in hybrid vehicles seeing significant increases in sales. Plug-in hybrid sales rose 30% in June, capturing more than 9% of the market, while hybrid sales rose 27%, accounting for nearly 15% of the market.