New car market grew by almost 18% in 2023 driven by businesses investing into new fleets

The Society of Motor Manufacturers and Traders (SMMT) has released new figures that shows the number of new cars registered in the UK grew by 17.9% in 2023.

The SMMT said that in 2023 the number of new cars registered was 1.9 million which was a “very positive result.”

The rise in new cars was driven by businesses investing into new fleets which is up 38.7% year-on-year.

However, Mike Hawes, chief executive of the SMMT said there is a lack of new private registrations due to the cost of living and soaring interest rates, which is “no surprise.”

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Even though there is a year-on-year on rise the new car market is still below pre-pandemic levels by 17.7%.

Hawes said, “With vehicle supply challenges fading, the new car market is building back with the best year since the pandemic.

“Energised by fleet investment, particularly in the latest EVs (electric vehicles), the challenge for 2024 is to deliver a green recovery.

“Government has challenged the UK automotive sector with the world’s boldest transition timeline and is investing to ensure we are a major maker of electric vehicles.

“It must now help all drivers buy into this future, with consumer incentives that will make the UK the leading European market for ZEVs (zero-emission vehicles).”

“With vehicle supply challenges fading, the new car market is building back with the best year since the pandemic.

“Energised by fleet investment, particularly in the latest EVs (electric vehicles), the challenge for 2024 is to deliver a green recovery.

“Government has challenged the UK automotive sector with the world’s boldest transition timeline and is investing to ensure we are a major maker of electric vehicles.

“It must now help all drivers buy into this future, with consumer incentives that will make the UK the leading European market for ZEVs (zero-emission vehicles).”

Ian Plummer, commercial director at online vehicle marketplace Auto Trader, said: “Overall growth in the volume of electric vehicles hitting UK roads in 2024 is incredibly positive news.

“With the ZEV mandate now fully in force, the UK automotive industry is facing pressure from both Government targets as well as new brands who are dominating in the electric space – see (Chinese company) BYD taking top spot in global sales last year.

“Combined, these forces will result in price – currently the biggest barrier to purchase – being used to stimulate flagging retail demand and this year will likely be a good year for those considering switching.”