The UK new car market grew 23.5% in November to 142,889 registered units in the fourth consecutive month of year-on-year growth, according to new figures published by the Society of Motor Manufacturers and Traders (SMMT).
Electric vehicles were the main drivers behind the latest growth, with plug-ins accounting for more than one in four vehicles as EVs took their largest monthly share of the new car market in 2022, the auto trade association said.
The growth delivered the best total for November since 2019, with manufacturers continuing efforts to fulfil orders amid erratic global components supply. However, registrations in the month were still -8.8% below 2019 levels, the SMMT said. While further recovery is anticipated in 2023, global and domestic economic challenges mean that the market will remain below pre-pandemic levels.
“We're seeing fewer than half the number of cars rolling off production lines than we did five years ago, owing primarily to ongoing issues obtaining computer chips for vehicles, which could severely dampen EV adoption in the coming months,’’ Managing Director of Novuna Vehicle Solutions, Jon Lawes said.
While companies have been purchasing vehicles up to 15 months in advance to cut the waiting time, this isn't the solution, the MD said, proposing that the Government should consider developing a robust semiconductor industry in the UK to address the problem.
Meanwhile, registrations by large fleets energised the market, up 45.4% compared with November last year. Demand from private buyers also grew, albeit by a more modest 2.7%. Business registrations more than doubled, but remain a small fraction of the overall market, the SMMT said.
Zero emission vehicle uptake continues to grow, with newly registered BEVs up 35.2% to represent more than one in five new cars – the largest monthly share of BEVs this year. Conversely, plug-in hybrid (PHEVs) registrations fell by -5.7%, making up 7.1% of the market.
The Tesla Model Y was the second bestselling vehicle of all fuel types in November, and the ninth bestselling in the year-to-date, suggesting that it could be the first ever BEV to hit the UK top ten by year end.
The most in-demand supermini and lower medium vehicle segments both grew by 21.5% and 20.5% respectively in November, while dual purpose vehicles increased by 21.8%. There was significant growth in luxury saloon and multi-purpose vehicles, up 87.3% and 288.6%, but these segments still remain a small section of the market.
As growth returns to the new car market, the car sector is poised to deliver an additional £8 billion for the UK economy in 2023, with an anticipated 15.4% market growth, the SMMT said.