The British new car market witnessed its best year since the Covid-19 pandemic as easing supply chain issues helped fulfil pent-up demand for fleet vehicles, an industry body said on Friday.
Data from the Society of Motor Manufacturers and Traders (SMMT) showed 1.9-million vehicles were sold in 2023, an increase of 17.9% from a year ago. Year-on-year December new car sales grew 9.6%.
The new car market recovery was fuelled by fleet owners increasing investments as the previous year's supply constraints faded and deliveries rebounded by 38.7% year over year.
Last year also saw more battery electric vehicle sales than the previous two years combined, with almost 315,000 new cars registered.
However, the industry body warned the next few months are also "likely to be volatile due to regulatory uncertainties" related to UK-EU Rules of Origin.
Last month, the EU and Britain agreed to give electric vehicle (EV) makers until the end of 2026 to comply with local content rules, delaying the imposition of tariffs on EVs traded with the UK.
"Government has challenged the UK automotive sector with the world's boldest transition timeline and is investing to ensure we are a major maker of electric vehicles", said SMMT CEO Mike Hawes.
The overall British new car market lagged 17.7% below pre-pandemic levels, according to the industry data, which also showed private consumer demand was on par with 2022 numbers as customers faced cost of living pressures and a high inflationary environment.
UK records best year for new car sales since the pandemic
SMMT says 1.9m vehicles were sold in 2023, an increase of 17.9% from a year ago
Image: Reuters
The British new car market witnessed its best year since the Covid-19 pandemic as easing supply chain issues helped fulfil pent-up demand for fleet vehicles, an industry body said on Friday.
Data from the Society of Motor Manufacturers and Traders (SMMT) showed 1.9-million vehicles were sold in 2023, an increase of 17.9% from a year ago. Year-on-year December new car sales grew 9.6%.
The new car market recovery was fuelled by fleet owners increasing investments as the previous year's supply constraints faded and deliveries rebounded by 38.7% year over year.
Last year also saw more battery electric vehicle sales than the previous two years combined, with almost 315,000 new cars registered.
However, the industry body warned the next few months are also "likely to be volatile due to regulatory uncertainties" related to UK-EU Rules of Origin.
Last month, the EU and Britain agreed to give electric vehicle (EV) makers until the end of 2026 to comply with local content rules, delaying the imposition of tariffs on EVs traded with the UK.
"Government has challenged the UK automotive sector with the world's boldest transition timeline and is investing to ensure we are a major maker of electric vehicles", said SMMT CEO Mike Hawes.
The overall British new car market lagged 17.7% below pre-pandemic levels, according to the industry data, which also showed private consumer demand was on par with 2022 numbers as customers faced cost of living pressures and a high inflationary environment.
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