New car market up 2.6% in 2024
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The UK’s new car market recorded its second successive year of growth with a 2.6% rise in registrations in 2024, new figures show. Industry body the Society of Motor Manufacturers and Traders (SMMT) said around 1,953,000 new cars were registered last year, compared with 1,903,000 in 2023.
Growth was delivered entirely by purchases for fleets owned or leased by businesses or other organisations, which were up 11.8%. Demand from private buyers fell by 8.7% to around 746,000 units. That was below the level seen in 2020, when coronavirus pandemic-related restrictions shut down the market for three months.
Total uptake by businesses running no more than 25 vehicles fell by 3.1% to around 43,000 units. SMMT chief executive Mike Hawes said demand from private buyers is “still very, very weak”. He claimed many consumers felt there was “every reason” to hold off making a purchase because of the “economic backdrop” and “confusion about what type of vehicle to buy” caused by mixed messages from governments over the last two years.
Labour has committed to reverse then-prime minister Rishi Sunak’s decision in September 2023 to delay prohibiting the sale of conventionally fuelled new cars and vans from 2030 until 2035. Pure battery electric new cars made up 19.6% of the new car market in 2024, with around 382,000 units.
