The UK new car market has recorded its best year since the pandemic as a strong December, up 10%, wrapped up the seventeenth month of consecutive growth. 1.9 million new cars reached the road during 2023 – an increase of 18%, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).
Growth was driven entirely by fleet investment as the previous year’s supply constraints eased and helped fulfil pent-up demand. Fleet deliveries rebounded by 39% year on year. While the overall new car market remains -18% below pre-pandemic levels, the higher uptake compared with the previous year saw the value of new car sales jump more than £10 billion to around £70 billion, with 288,991 additional vehicles reaching the road.
Hybrid electric vehicles (HEVs) recorded robust growth, up 27% to reach a 13% market share. Plug-in hybrids (PHEVs) also enjoyed a strong year, with a 39% increase in registrations to account for 7% of the market.
Battery electric vehicle (BEV) uptake reached a record volume – up by almost 50,000 units with 314,687 new registrations. Indeed, 2023 saw more BEVs reach the road than in 2020 and 2021 combined. Overall, BEVs accounted for one in six new cars registered in 2023, with the majority taken by business and fleet buyers who benefit from compelling tax incentives. In contrast, one in 11 private buyers chose a BEV.
Meanwhile, UK demand for new light commercial vehicles (LCVs) grew by 21% to reach 341,455 units in 2023. More businesses invested in fleet renewal every month compared with the year before – with a record number of zero-emission vans joining Britain’s roads.
Britain saw an additional 59,316 LCVs of all types and sizes join its roads when compared to 2022, following an extra £2 billion spend by companies that carry out essential roles in the economy, from local trades to retailers and online delivery services. December was particularly strong, with demand up 36% – the best total for the month since 2015.
Positively, uptake of new battery electric vans (BEVs) hit record volumes in the year as volumes grew by 21% to 20,253 units – with 28 different models registered – representing 6% of the market. The year ended on a high as BEV uptake jumped 74% to 2,964 units in December, with the very greenest vehicles representing 10% of registrations in the month – the second highest ever monthly BEV share. It means that since 2019, 58,226 BEVs have joined UK road, helping make the UK the third largest BEV market in Europe by volume – but behind several other European nations by market share, including Germany, France, and Spain.
