The automotive trade body said declines were recorded across all buyer types, with fleets falling 1.7 per cent, and the low-volume business market declining 12.8 per cent. Private purchases were down 11.8 per cent.
The fall was driven by double-digit drops in petrol and diesel vehicle deliveries, down 14.2 per cent and -20.5 per cent respectively. The uptake of hybrid electric vehicles and plug-in hybrid electric vehicles fell too at 1.6 per cent and 3.2 per cent. Battery electric vehicles (BEVs) recorded growth, with new models driving the strongest growth this year, up 24.5 per cent to reach a 20.7 per cent share of the market.
UK new car buyers can choose from over 125 different BEV models, which is an uplift of 38 per cent over the last 10 months. SMMT noted that the average BEV has a higher upfront cost than an ICE equivalent, but widening choice and manufacturer discounting means that around one in five BEV models now has a lower purchase price than the average petrol or diesel car.
While almost 300,000 new BEVs have reached the road in 2024, this represents 18.1 per cent of the market. This is an increase on 2023, but short of the 22 per cent target for this year and of the 28 per cent required in 2025 under the Vehicle Emissions Trading Scheme.
The Budget extended existing business and fleet incentives for BEVs, but changes to Vehicle Excise Duty and Company Car Tax disincentivises low carbon vehicle purchases and fleet renewal generally, SMMT said, which risks a delay to the overall reduction in road transport emissions.
In a statement, Mike Hawes, SMMT chief executive, said: “Massive manufacturer investment in model choice and market support is helping make the UK the second largest EV market in Europe. That transition, however, must not perversely slow down the reduction of carbon emissions from road transport. Fleet renewal across the market remains the quickest way to decarbonise, so diminishing overall uptake is not good news for the economy, for investment or for the environment. EVs already work for many people and businesses, but to shift the entire market at the pace demanded requires significant intervention on incentives, infrastructure and regulation.”
Commenting on October’s figures, Russell Olive, UK director, vaylens, said: “Heavy discounting and a more competitive market have ignited demand for BEVs.
“However, the sector is still facing challenges. There may have been a double-digit drop in petrol and diesel vehicle deliveries, but the reality is that it’s not enough to drive real change with 56.6 per cent of buyers in October still opting for diesel or petrol alternatives. And fleet uptake has been the big driver behind new BEV registrations, while demand among private buyers has been much lower.
“It’s also looking increasingly likely that the UK will fall short of the ambitious zero-emissions vehicle mandate of 22 per cent by the end of the year.
“Fiscal incentives, such as this week’s decision to increase the differential between fully electric and other vehicles in the first rates of Vehicle Excise Duty, may help slightly. But to avoid momentum stalling, the industry needs more investment. Efforts to increase the availability and distribution of charging points need to be continued. It’s also important that there is a plan in place to manage the growing amount of charging infrastructure.”
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