New car market grows for sixth month in a row in best start to year since pre-Covid

by John Bowman @john@blackballmedia.co.uk

The new car market grew by nearly 15 per cent in January to reach 131,994 units –the best start to a year since pre-Covid January 2020.

Figures for January 2023 – released on February 6 by the SMMT – marked the sixth month of expansion in a row and set the tone for an anticipated countercyclical year of growth, according to the trade body.

The UK new car market grew by 14.7 per cent, with electrified vehicles notably driving the increase, thanks to manufacturers bringing more choice to the market in spite of continuing supply chain struggles.

Hybrid electric vehicles (HEVs) comprised 14.4 per cent of new car registrations, increasing volumes by 40.6 per cent, with a figure of 18,976 units. Meanwhile, battery electric vehicle (BEV) registrations rose by 19.8 per cent to reach 17,294 units, or 13.1 per cent of new registrations – slightly below the average for 2022.

Plug-in hybrid vehicles (PHEVs) recorded a 0.7 per cent rise at 9,109, although their share fell to 6.9 per cent of new cars reaching the road.

As a result, one in five new cars registered in the month came with a plug.

Plug-ins are anticipated to comprise more than one in four new registrations this year, representing growth of 32.1 per cent or approximately 487,140 units and nearly a third (31 per cent) of the market in 2024 at 607,150 units.

However, the SMMT repeated its warning that the roll-out of infrastructure needed to charge them was failing to keep pace.

During the last quarter of 2022, the ratio of new chargepoint installations to new plug-in car registrations dropped to one for every 62 – a significant fall, it said, versus the same quarter last year, when the ratio was 1:42.4.

As a result, in 2022 one standard public charger was installed for every 53 new plug-in cars registered – the weakest ratio since 2020. The SMMT said the Budget on March 15 was an opportunity to put in measures that supported the transition.

SMMT chief executive Mike Hawes 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.

‘The industry and market are in transition but fragile due to a challenging economic outlook, rising living costs and consumer anxiety over new technology.

‘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.’

The SMMT anticipates 1.79 million new car registrations in 2023 – an 11.1 per cent increase on the past year.

Mike Hawes SMMT chief executive