News

New car registrations in the UK fell by 1.9% year-on-year in November, with 153,610 vehicles joining the road, according to the Society of Motor Manufacturers and Traders (SMMT). This marks the second consecutive monthly decline as manufacturers face pressures to meet Zero Emission Vehicle (ZEV) mandate targets against the backdrop of contracting market demand.

Private buyer registrations dropped by 3.3% to 58,496 units, now representing 38.1% of the market. Fleet demand, accounting for 59.9%, slipped by 1.1% to 91,993 units, while business demand rose modestly by 5.2%.

EV market resilience
Battery electric vehicle (BEV) registrations rose by 58.4% to 38,581 units, representing 25.1% of the market – the highest since December 2022. This growth, driven by manufacturer discounting, surpassed ZEV mandate targets but raised questions about sustainability.

Ian Plummer, commercial director at Auto Trader , highlighted the temporary nature of the EV surge: “The rise reflects manufacturers’ and retailers’ incentives. Sustaining this momentum requires greater consumer confidence and infrastructure improvements.”

Sue Robinson, CEO of the National Franchised Dealers Association , echoed these concerns: “While BEVs continue to grow, the overall market contraction highlights the need for stronger collaboration between the industry and government to address economic and regulatory pressures.”

Financial pressures on fleets and used markets
Toby Poston, director of corporate affairs at the BVRLA , warned of challenges in the leasing and used markets. “Leasing companies, responsible for two-thirds of BEV purchases, are bearing unsustainable depreciation costs due to fragile demand. A healthy new car market needs a buoyant used market, and government support for used EVs is long overdue.”

John Cassidy, managing director at Close Brothers Motor Finance , noted headwinds: “Consumer appetite for EVs faces challenges, from slow infrastructure rollout to concerns over ZEV mandates. Manufacturers and policymakers must address these issues urgently to meet 2035 targets.”

Economic outlook and regulation
Jamie Hamilton, automotive partner at Deloitte, urged pragmatic regulation: “A balanced approach to the ZEV mandate, alongside consumer incentives, will be critical. Economic factors like inflation and consumer confidence will also play a decisive role in EV adoption.”

Future prospects in EV transition
Philipp Sayler von Amende, chief commercial officer at Carwow, struck a note of optimism: “BEV enquiries are at a 12-month high, supported by improved supply and discounts. If demand continues on this trajectory, the UK could see strong growth into 2025.”