The UK's new car market recorded an 18.4% increase in registrations in the first half of 2023, with electric vehicle registrations growing 39.4% in June.
Just under one million new cars were registered in the first half of 2023, up 18.4 per cent on the previous 2022, according to new figures from the Society of Motor Manufacturers and Traders . The car market’s continued surge follows a prolonged period of low production in the sector, caused by a global shortage in computer chips that pummelled production post-pandemic.Battery electric vehicle registrations grew 39.4 per cent in June, with deliveries at a record level of 152,968.Mike Hawes, SMMT chief executive, said “the new car market is growing back and growing green, as the attractions of electric cars become apparent to more drivers.
Jamie Hamilton, automotive partner and head of electric vehicles at Deloitte, said that despite the growth, “the industry faces an uphill challenge for the rest of the year around affordability. Rising interest rates are impacting the cost and availability of car loans for consumers.” Meanwhile, Manu Varghese, from EY’s UK & Ireland Advanced Manufacturing & Mobility Team, was more positive – but said the industry needs “clear post-Brexit trade policies”.