According to Reuters, on August 5th, the Society of Motor Manufacturers and Traders (SMMT) in the UK downgraded its forecast for new car sales in the UK for 2024, citing weak demand in the private electric vehicle market as a primary concern.
SMMT's latest forecast predicts that new car sales in the UK this year will be 1.97 million units, down from the previous forecast of 1.98 million units. Additionally, the annual market share expectation for pure electric vehicles has been revised down from 19.8% to 18.5%.
The latest registration data from SMMT shows that last month, new car registrations in the UK increased by 2.5% year-on-year to 147,517 units, marking 24 consecutive months of growth and the best July performance since 2020.
Among these, demand in the private retail market fell by 11.1% year-on-year to 53,356 units. As of July this year, the private retail demand in the UK automotive market has been declining for ten consecutive months. SMMT Chief Executive Mike Hawes stated in a press release, "Despite generous discounts offered by manufacturers, the weak demand in the private retail market (especially for electric vehicles) remains the most concerning issue."
In July, the demand for electrified vehicles in the UK exceeded that of the overall car market, with a registration share of 42%. Among these, registrations of hybrid vehicles reached 21,446 units, up 31.4% year-on-year, with a market share of 14.5%; plug-in hybrid vehicle registrations reached 13,149 units, up 12.4% year-on-year, with a market share of 8.9%; pure electric vehicle sales rose 18.8% year-on-year to 27,335 units, with a market share of 18.5%.
From January to July this year, new car registrations in the UK increased by 5.5% year-on-year to 1,154,280 units. Among these, demand in the private market fell by nearly 12% year-on-year; fleet new car registrations rose 21% year-on-year to 691,929 units. Based on the registration data for the first seven months, pure electric vehicle registrations accounted for 16.8% of total new car registrations.
SMMT stated, "For car brands, zero-emission vehicle registrations this year need to be at least 22% of the annual total sales, hence the pace of transition needs to significantly accelerate." However, given the current market conditions, this faster transition seems increasingly unlikely.
