UK Car Market Sees Strongest July Since 2019 Driven by Electrified Vehicles
New car registrations surge by 11.7%, marking eight consecutive months of growth, though manufacturers face financial strain.
Image: Eddie Pollard / AI
Sarah Connor
The UK’s new car market expanded by 11.7% in July compared to last year.
Elevated fuel prices and government incentives fueled this surge, alongside manufacturer incentives and a wider array of lower-cost electric models.
For the first time, one in every two new car inquiries on Autotrader in July concerned a plug-in car.
The Renault 5 emerged as the UK's best-selling electric car for July, registering 1,805 units.
Conversely, diesel car registrations saw a 5.2% decline during the same month.
Mike Hawes stated that July’s record EV performance reflects the industry’s substantial investment in zero-emission mobility.
However, Hawes warned that this progress is unsustainable if manufacturers continue to incur significant losses from EV discounts. These discounts distort demand to avoid even steeper penalties.
The sector's commitment to decarbonization is clear, but its ability to remain viable and attract investment for an EV future faces intense pressure, Hawes added.
Hawes called for urgent reform of the regulation. Without it, Britain risks undermining its competitiveness and the jobs and livelihoods dependent on this industry.
The Government’s zero-emission vehicle (Zev) mandate sets a headline target of 33% for the minimum proportion of new cars sold by each manufacturer this year that must be zero emission.
Despite strong sales, EV sales remain some way short of the Government's mandated 33% market share target for 2026.
More work must support and encourage drivers to switch to EVs, especially given that electric cars, particularly premium ones, are often criticized for being very expensive.