Fleet sales keep UK car market afloat as private sales dip again

The UK has now experienced two years of consistent new car market growth following July’s 2.5% rise, data from the Society of Motor Manufacturers and Traders has revealed.

Like other months this year, July’s 147,517 deliveries were propped up by fleet sales, whose total of 91,521 represented a year-on-year rise of 13%.

The 11.1% year-on-year decline in private sales (to 53,356) means non-business deliveries now make up just 36.2% of the market. In mitigation, the SMMT said the growing popularity of salary-sacrifice purchasing will have contributed to this decline.

Private sales of EVs did increase, however, albeit by a marginal 0.9%. In total, just 17.2% of all 27,335 EV sales were private, again showing the strong pull of benefit-in-kind incentives.

Overall, EVs were the second-biggest riser (up 18.8%), topped only by mild-hybrid vehicles (up 31.4% to 21,446). Plug-in hybrid vehicles recorded a 12.4% rise to 13,149.

The 5.9% drop in sales of petrol vehicles (to 76,879) indicates manufacturers are pushing customers towards EVs as they grapple to hit the UK’s 22% ZEV mandate target for 2024, says the SMMT. Despite the decline, the powertrain still makes up 52.1% of the market.

SMMT CEO Mike Hawes said: “Two years of new car market growth against a backdrop of a turbulent economy is testament to the sector’s resilience and the attractiveness of the deals on offer.” 

He used the figures to again call for market support from the new government: “Weakening private retail demand, however, particularly for EVs and despite generous manufacturer discounts, is the overriding concern. 

“More people than ever are buying and driving EVs but we still need the pace of change to quicken, else the UK’s climate change ambitions are threatened and manufacturers’ ability to hit regulated EV targets are at risk. 

“Achieving market transition at the pace demanded requires greater support for consumers and, with the all-important new numberplate month of September beckoning, action on incentives and infrastructure is needed now."