NEW CAR MARKET SEES TWENTY SECOND MONTH OF GROWTH, NFDA HIGHLIGHTS KEY POINTS IN MANIFESTO FOR NEXT GOVERNMENT

“May continues an extremely positive first half of the year in the new car market and marks a twenty-second consecutive month of growth in the new car market” said Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA), which represents franchised car and commercial vehicle retailers in the UK commenting on the latest SMMT new car registration figures.

In May, a total of 147,678 new cars were registered, an increase of 1.7% from the same period last year. Sales to private buyers decreased by -12.9%; fleet registrations were up by 14.0%.

Battery electric vehicles (BEVs) experienced an increase, up 6.2% to 26,031 units. Plug-in hybrid (PHEVs) registrations increased by 31.5% to 11,866 units, and hybrids (HEVs) followed with growth of 9.6% to 19,503 units. There are 133,062 registered BEVs on the road in 2024 compared to the 121,268 units at the same point last year, a 9.7% increase.

With sales of electric growing, diesel fell from 11,074 units to 9,220 units (-16.7%), and notably petrol also fell from 82,800 units to 81,058 units (-2.1%).

Sue Robinson concluded, “The new electric vehicle market has also seen another month of moderate growth. As has been the trend throughout 2024, fleet continues to be the main driver for new car registrations. A key focus for the next government will be a need to incentivise private demand.

“Whilst the new car market has shown remarkable resilience this year, there remains a lot to think about for the political parties during this build up to the General Election. Yesterday, NFDA released its General Election manifesto which lists seven key ‘asks’ outlining a vision for the future of automotive retail and the wider industry, including on issues such as the Apprenticeship Levy and Business Rates.

“NFDA will continue to monitor developments during the election trail for its members and it is essential that the next government works with the sector and offers robust support on key issues.”