Volkswagen dominated as UK new automotive gross sales reached 1.9 million in 2023

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Volkswagen dominated the UK’s new automotive market in 2023, ending the yr with 162,087 registrations and market share of 8.52%, virtually an entire proportion level forward of nearest rival Ford’s 7.57%.

Solely seven automotive manufacturers achieved market share above 5%: VW, Ford, Audi, BMW, Toyota, Kia and Vauxhall.

In distinction, there are actually greater than 20 new automotive manufacturers which have lower than 1% share of the UK market. This consists of an inflow of recent manufacturers akin to Ineos, BYD and Fisker, along with some long-established carmakers which have declined, akin to Fiat, Jaguar, Jeep and SsangYong.

Extra new entrants within the subsequent few years will dilute the market additional, if they don’t power out among the stragglers, making model selection much more difficult for each franchised sellers and UK motorists.

The Society of Motor Producers and Merchants celebrated that the UK’s new automotive market reached its highest stage for the reason that pandemic, with 1,903,054 new automotive registrations, a 17.9% year-on-year enhance.

Personal demand has stagnated, nevertheless, with 817,673 gross sales a 0.1% drop on 2022’s non-public gross sales. It was the fleet section which recorded all the expansion, as elevated ranges of recent automotive provide drove OEMs to resupply the company, rental and personal fleet prospects that had been de-prioritised through the current provide constraints.

Registrations of battery electrical autos (BEV), also referred to as pure electrical vehicles, rose virtually 50,000 items to 314,687 new registrations by the year-end. The BEV share of the market was flat, at 16.5%, which can concern some business observers given the ZEV Mandate now launched and a comparatively quick timespan to persuade most new automotive prospects that an EV needs to be their selection. At the moment only one in 11 non-public patrons picks a pure electrical automotive. Three quarters of BEV registrations are within the fleet market, the place taxation advantages incentivise them.

The SMMT additionally warned that he subsequent few months are additionally prone to be risky as a result of regulatory uncertainties which have beset the market over the previous few months – most clearly the last-minute deal on UK-EU Guidelines of Origin, which avoids tariffs on EVs however which has made planning troublesome.

Mike Hawes, SMMT chief government, mentioned: “With automobile provide challenges fading, the brand new automotive market is constructing again with the very best yr for the reason that pandemic. Energised by fleet funding, notably within the newest EVs, the problem for 2024 is to ship a inexperienced restoration.

“Authorities has challenged the UK automotive sector with the world’s boldest transition timeline and is investing to make sure we’re a significant maker of electrical autos. It should now assist all drivers purchase into this future, with shopper incentives that can make the UK the main European marketplace for ZEVs.”

The SMMT at the moment forecasts the 2024 new automotive market to succeed in 1.97 million items, of which 439,000 will likely be BEVs to attain a 22.3% market share.

Rod McLeod, director of Volkswagen UK, mentioned: “I’m as soon as once more happy that Volkswagen has secured prime spot within the UK for new-car gross sales. This great end result speaks volumes for the standard and attractiveness of our vehicles, and for the implausible work of our community companions, who proceed to offer prospects excellent service earlier than, throughout and after delivering their new vehicles.Škoda UK brand director, Rod McLeod

“This yr we are going to proceed to develop our award-winning ID. vary of electrical vehicles, and naturally now we have the fiftieth anniversary of the Golf in addition to many extra thrilling new merchandise to look ahead to.”

John Veichmanis, chief government of Carwow, mentioned its current information revealed that 80% of drivers are contemplating an EV as their subsequent automotive this yr, in efforts in the direction of a greener 2024. Whereas this is encouraging, he mentioned, to make sure those that are contemplating switching really make the change, there’s clearly extra to be completed by way of monetary incentives, clear communication from authorities and confidence within the charging community.

David Borland, EY UK & Eire automotive chief, mentioned the disparity between the timing of the ZEV Mandate and the UK Authorities’s delay to the Inside Combustion Engine (ICE) automobile gross sales ban till 2035 will “proceed to signify one of the vital marked challenges to the UK’s EV transition going ahead”, as OEMs try to supply a extra compelling proposition to customers to make the swap.

“And with query marks remaining across the residual values of EVs, whereas the present profitability of EV gross sales seems stretched, the street forward will definitely be a posh one,” he added.

“As auto firms within the UK look to construct on a big yr of development in 2023, putting the appropriate stability between their ICE and EV priorities will likely be essential. The ZEV Mandate will immediate OEMs to put an growing deal with EVs and the way they handle the complexities of product planning, however the full portfolio of powertrain applied sciences should proceed to be thought of. With Plug in Hybrid Electrical Autos (PHEVs) having the best development of all powertrain sorts at almost 40% for the yr, it’s clear that they’re a part of the answer to supply customers with consolation amid any hesitancy they could should go all electrical within the close to time period.”

NFDA chief executive, Sue RobinsonOn the Nationwide Franchised Sellers Affiliation, chief government Sue Robinson mentioned the shortage of readability from the Authorities on EVs, such because the pushing again of the ICE ban from 2030 to 2035, seems to have impacted shopper confidence on electrical.

“2024 is about to be an vital yr for the UK automotive sector notably with the continued shift in the direction of electrical. With the ZEV mandate turning into legislation on Wednesday, electrical autos look set to regularly enhance their market share and achieve floor on petrol autos which at the moment maintain the biggest market share within the UK.

“Nonetheless, these figures define that there stays vital points which the Authorities might want to deal with for the yr forward akin to the provision of EV charging infrastructure throughout the nation. The UK additionally stays the one main market in Europe with out incentives for personal patrons with France lately introducing measures and Italy additionally trying set to supply incentives for EVs. It’ll even be fascinating to view the progress of recent Chinese language producers which can enter the UK market this yr.

“With the Spring Funds introduced for March and a Normal Election anticipated in Autumn, it’s a politically and fiscally vital time for the sector and the NFDA will proceed to to focus on the problems affecting the auto retail sector and guarantee constructive progress is made to profit the business, shopper and atmosphere .”

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