2024 ENDS WITH THREE MONTHS OF CONSECUTIVE CONTRACTION IN THE NEW CAR MARKET, BEVS FINISH WITH 19.6% MARKET SHARE

“Concerningly, 2024 sees the new car market end on a low note, experiencing a third consecutive contraction albeit a small one in December” 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 December, a total of 140,786 new cars were registered, a decrease of -0.2% from the same period last year.

Sales to private buyers were down by -1.7%; fleet registrations were up by 0.2%. In 2024, the new car market fell just short of 2 million units registered, increasing by 2.6% to 1,952,778 units from 1,903,054 units in 2023.

Battery electric vehicles (BEVs) continue to experience a sizeable increase, up 56.8% to 43,656 units. Plug-in hybrid (PHEVs) registrations also rose by 4.6% to 12,716 units, as did hybrids (HEVs) by 10.4% to 17,899 units. In total, 381,970 new BEVs were registered in 2024, compared to 314,687 units in 2023, representing a 21.4% increase, to give an overall market share of 19.6% for the year.

With sales of electric growing, diesel fell from 9,728 units to 7,060 units (-27.4%), and petrol also dropped from 75,150 units to 59,455 units (-20.9%).

Sue Robinson concluded, “Continuing the prevailing trend in the market, private demand remains in decline. This caps off a largely disappointing 2024 for private demand, which is down by -8.7% compared to 2023.

“BEVs ended the year on a high note following strong performances in recent months, seeing a 56.8% increase from December 2023 and closing the year with a market share of 19.6%."

“In December, NFDA sent a letter to Business Secretary Jonathan Reynolds MP, addressing the ZEV mandate and presenting several policy recommendations, including increased flexibility in extending the Vehicle Emissions Trading Scheme beyond 2026.

“NFDA welcomed last month’s government consultation seeking views on proposals to support the UK’s transition to zero emission vehicles, offering a valuable opportunity for the sector to help shape the transition. Under current regulations, in 2025, the ZEV mandate quota will increase to 28%.

“As we look ahead to 2025, it is vital for the Government to work closely with the NFDA and the broader industry to ensure the ZEV mandate bolsters rather than disrupts the sector. Additionally, key developments to watch over the course of the year include the introduction of VED on electric vehicles and the rise in employers' national insurance contributions.”