The UK had its finest 12 months for automobile gross sales because the pandemic in 2023, as greater than 1.9 million had been registered, based on new figures from the Society of Motor Manufacturers and Traders (SMMT).

Growth of 289,000 over 2022’s 30-year low of 1.6 million sales was pushed solely by fleet clients, who registered 1.1 million vehicles alone, a 38.7% rise 12 months on 12 months.

The personal market remained steady, with 818,000 registrations, as the price of residing disaster and excessive rates of interest continued to chunk and stalled additional development.

Last 12 months’s numbers had been nonetheless 17.7% down on 2019’s excessive of two.3 million.

Despite this, SMMT boss Mike Hawes says the business “faces 2024 with much more confidence and optimism” than the 12 months earlier than and predict it to push on additional to 1.97 million.

Key to the expansion was the report take-up of EVs, which accounted for one in six vehicles registered.

This was once more pushed by enterprise and fleet consumers, because of the compelling tax incentives of going electrical: benefit-in-kind tax charges will sit at simply 2% till not less than 2025.

Of the full 315,000 EVs registered in 2023 (up 50,000 on 2022), 242,235 had been despatched to fleets, that means simply 8.9% had been personal gross sales. In comparability, mixed EV gross sales in 2020 and 2021 totalled 298,932.

Meanwhile, hybrids recorded 27.1% development in 2023 to succeed in a 12.6% market share, whereas plug-in hybrids had been up 39.3% (for 7.4% of the market). 

Buyers once more confirmed desire for superminis and SUVs, which accounted for 29.8% (round 86,000) and 28.6% (82,000) of whole automobile gross sales. Crossovers such because the Ford Puma put in one other sturdy exhibiting, taking a 28.3% (81,000) slice.

These three segments have been the most well-liked since 2013.

“With vehicle supply challenges fading, the new car market is building back with the best year since the pandemic,” stated SMMT chief Mike Hawes.

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

Call to halve VAT on EVs

The SMMT, backed by the automotive business, has used the information to once more name on the federal government to reintroduce EV incentives for personal consumers after it revealed that client demand has flattened.

The UK is at present the one main European market with none non-business buy incentives on EVs – however is the one market with a mandated minimal gross sales goal by way of the brand new ZEV mandate.

As such, the foyer group desires Westminster to halve VAT on new EVs for 3 years, which might translate to decrease buying prices – the same degree of assist at present accessible to enterprise consumers.