OCTOBER SEES FURTHER CONTRACTION IN NEW CAR MARKET, EVS ONLY POWERTRAIN TO SEE GROWTH FOR THE MONTH

“October saw another month of contraction in the new car market, a concerning trend following August's end to two years of continuous growth. This decline is particularly worrying, as it highlights the volatility of the market right now” 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 October, a total of 144,288 new cars were registered, an decrease of -6.0% from the same period last year. Sales to private buyers were down by -11.8%; fleet registrations were also down by -1.7%.

Despite this, battery electric vehicles (BEVs) experienced a sizeable increase, up 24.5% to 29,802 units. Plug-in hybrid (PHEVs) registrations contracted by -3.2% to 13,832 units, and hybrids (HEVs) also contracted by -1.6% to 19,012 units. In 2024, 299,733 new BEVs have been registered so far, compared to 262,487 units at the same point last year, representing a 14.2% increase.

With sales of electric growing, diesel fell from 11,276 units to 8,961 units (-20.5%), and notably petrol also saw a drop from 84,702 units to 72,681 units (-14.2%).

Sue Robinson concluded, “Following September’s record BEV performance, October has sustained this momentum with a market share of 20.7% for the month, amounting for 1 in 5 sales and the only powertrain to see growth. 

"Both private demand and fleet saw declines this month. Although the Chancellor acknowledged the significance of electric vehicles in the Autumn Budget, such as maintaining current incentives for EVs in company car tax, investment in charging infrastructure is also vital to drive demand further. 

“Last week’s Autumn Budget, had some bright spots notably with the fuel duty freeze, but there are still areas of concern, particularly the rise in employers’ national insurance from 13.8% to 15%, starting in April 2025. Notably, in the Budget, the Government also reaffirmed their commitment to phasing out new internal combustion engine cars by 2030.

“NFDA will continue to collaborate closely with Parliamentarians to address many of these challenges."