First-half gross sales of recent vehicles in UK cross 1m for first time since earlier than Covid

Carmakers have bought greater than 1,000,000 vehicles within the UK within the first half of the yr for the primary time since before the coronavirus pandemic because the sector progressively recovers from years of turmoil.

Gross sales within the first six months of 2024 rose by 6% to simply over 1m, in contrast with 949,000 in the identical interval final yr, in keeping with the Society of Motor Producers and Merchants, the UK business’s foyer group.

The share of electrical vehicles hit 19% in June, its highest this yr.

The SMMT prompt that the business would promote about 2m vehicles over the yr, additionally for the primary time since 2019. Its chief government, Mike Hawes, stated that annual complete can be “a bit beneath par” however that the restoration was a reduction for the business after years of struggles.

Nevertheless, the expansion was “virtually totally enterprise and fleet gross sales” relatively than non-public patrons, Hawes informed BBC Radio 4’s In the present day programme. “Provided that most individuals purchase with some type of finance, with inflation excessive and rates of interest excessive, it has made the price of buy dearer.”

Gross sales to non-public patrons fell for the ninth consecutive month, and have been down 12% within the first half of the yr in contrast with 2023.

Annual automotive gross sales peaked in 2016 at a file 2.69m. After that they fell for 3 years – albeit remaining nicely above 2m – till they plunged in 2020 because the pandemic compelled factories to pause manufacturing and prevented individuals from visiting showrooms for months. That was adopted by years of supply-chain turmoil.

Sales picked up to 1.9m in 2023, though that was nonetheless the weakest barring the pandemic years since earlier than the worldwide monetary disaster of 2008.

The rise of electrical autos has additionally been a complicating issue for the business, which should now promote extra zero-emissions vehicles or else face steep fines. Nevertheless, European producers have complained that they’re struggling to search out patrons for his or her electrical vehicles, which they’ve priced increased than petrol or diesel equivalents in an effort to cowl the price of batteries. Vauxhall, Peugeot and Fiat’s proprietor Stellantis final week threatened to close its UK factories due to the so-called zero emission car (ZEV) mandate.

The market share of pure battery electrical new vehicles remained about the identical within the first half of 2024 as final yr, at 16.6%, the SMMT stated. Within the first half of 2023 it was 16.1%.

Hawes stated that “we now have seen is one thing of a plateau flattening out” in demand for electrical vehicles.

“When these autos have been first in the marketplace, there actually was excessive demand for them, as a result of these have been the early adopters,” he added. “We have to get that from the early-adopter section into the mass market. That’s by no means going to be easy.”

Carmakers had bought 827,000 vehicles within the first 5 months of the yr, a 7% improve on 2023.