UK new car registrations up 14% in October

(Sharecast News) - UK new car registrations rose roughly 14% in October, marking the 15th consecutive monthly increase as the automotive industry continues to recover from supply chain issues stemming from the Covid-19 pandemic. Registrations of new vehicles rose 14.3% year-on-year to 153,529 in October, according to the Society of Motor Manufacturers and Traders, while year-to-date registrations were up 19.6% at 1.60m.

Diesel registrations dropped 17.1% year-on-year to 5,261 last month, while petrol registrations were up 9.3% at 62,303. Battery electric vehicle registrations rose 20.1% to 23,943, plug-in hybrid electric vehicle registrations surged 60.5% to 14,285 and hybrid electric vehicle registrations grew 24.6% to 19,574.

However, the report also showed that less than one-quarter of new battery-powered electric cars were sold to private buyers, something the SMMT said evidenced the need for fiscal incentives to be aimed at getting private consumers to switch to electric vehicles.

Fleet registrations grew 28.8% year-on-year to 87,479, while private demand was broadly flat at 62,915.

Mike Hawes, chief executive of the SMMT, said: "With demand for new cars surpassing pre-pandemic levels in the month, the market is defying expectations and driving growth.

"As fleet uptake flourishes, particularly for EVs, sustained success depends on encouraging all consumers to invest in the latest zero-emission vehicles. The Autumn Statement is a key opportunity for government to introduce incentives and facilitate infrastructure investment. Doing so would send a clear signal of support for drivers, reassuring them that now is the time to switch to electric."

The SMMT revised its forecast for sales higher by 2.1% to 1.88m units, with further growth anticipated in 2024, but lowered its forecast for sales growth in battery-powered electric cars by 1.7% to 324,000 units.

Reporting by Iain Gilbert at Sharecast.com