New Car Registrations DOWN 5% in July

New car registrations in the UK fell by 5% in July as electric car sales stalled waiting for clarification on the Electric Car Grant.

We’ve already declared the new Electric Car Grant a mess, failing to target private buyers and only half-baked when it was announced, and clarity on which EVs will be eligible still not clear.

Inevitably, the EV grant mess saw many EV buyers put off making a purchase in the hope they’d get a further £1,500 off the price if they waited (and maybe £3,750), although with the grant going to the car maker, not the buyer, it seems highly likely the grant will just be absorbed in the much bigger discounts EV makers have been giving to try and boost sales.

All that’s seen a big drop in growth of EV sales to just 9.5% in July (down from near 40% growth last month) in a market which fell by 5% to 140,154, the weakest June since 2022.

Registrations to private buyers fell by 3.2% and to Fleet buyers by 6.5%, with Hybrid registrations falling by 10% and combined petrol and diesel registrations fell by 14% (but still accounting for 53% of the market), although registrations of PHEV jumped by 33% for a 12.5% market share.

Mike Hawes, SMMT CEO, said:

July’s dip shows yet again the new car market’s sensitivity to external factors, and the pressing need for consumer certainty. Confirming which models qualify for the new EV grant, alongside compelling manufacturer discounts on a huge choice of exciting new vehicles, should send a strong signal to buyers that now is the time to switch. That would mean increased demand for the rest of this year and into next, which is good news for the industry, car buyers and our environmental ambitions.

Top-selling cars in July were the Kia Sportage, Ford Puma and Nissan Juke.