New car market up 2.6% in 2024 but demand from private buyers remains 'very weak'
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The UK's new car market has seen its second consecutive year of growth, with a 2.6% increase in registrations in 2024, according to the latest figures. The Society of Motor Manufacturers and Traders (SMMT) reported that approximately 1,953,000 new cars were registered last year, compared to 1,903,000 in 2023. This growth was driven entirely by fleet purchases or leases by businesses or other organisations, which saw an 11.8% rise.
However, demand from private buyers dropped by 8.7% to around 746,000 units, lower than the levels seen in 2020 when the Covid-19 pandemic forced the market to close for three months. Businesses operating no more than 25 vehicles saw a decrease of 3.1% to about 43,000 units.
SMMT chief executive Mike Hawes described the demand from private buyers as "still very, very weak". He suggested that many consumers are delaying their purchases due to the economic climate and confusion over what type of vehicle to buy, caused by mixed messages from governments over the past two years.
Labour has pledged to reverse Rishi Sunak's decision in September 2023 to postpone the ban on the sale of conventionally fuelled new cars and vans from 2030 to 2035. Pure battery electric new cars accounted for 19.6% of the new car market in 2024, with around 382,000 units. Under the Government’s zero emission vehicles (Zev) mandate, car manufacturers were required to ensure that 22% of their sales were purely electric last year. The target for reducing emissions goes up every year, like 28% for 2025.
