The UK new car market rose 1.0% in September, to 275,239 units, according to SMMT figures.
SMMT calculates that manufacturers are on course to spend at least £2 billion on discounting EVs this year.
Industry experts have offered perspective in response to SMMT’s data released today.
Philip Nothard, Insight Director at Cox Automotive, said: “September’s new car market was less about the headline growth and more about how it was achieved.
“EV sales surged due to unprecedented discounting, masking weak underlying demand, especially among private buyers.
“Fleet purchases drove the market, while private demand dropped, reflecting ongoing financial strain from the Zero Emission Vehicle (ZEV) mandate.
“The month’s results define how the year will end, with manufacturers and industry bodies calling for more support as the gap between EV targets and real consumer behaviour widens.”
“The 2024 figures are essentially set, but the focus shifts to the potential challenges in 2025. The market may face further disruption if current dynamics persist, including heavy reliance on discounts and weak private EV demand. Structural changes and more substantial incentives will be crucial to ensure sustainable growth moving forward.”
Lisa Watson, Director of Sales at Close Brothers Motor Finance, said: “September’s new plates have contributed to a further rise in registrations. However, fleet statistics continue to skew electric vehicle (EV) data.
“We have started to see an increase in discounts and price reductions to try and boost activity as consumer demand for EVs stalls, and more buyers turn to the used market.
“Significant barriers, such as a lack of charging infrastructure, continue to hamper progress towards government targets, and we have seen manufacturers backtrack on their electrification plans and halt production as a result.
“Following Labour’s decision to revert back to the original 2035 new petrol and diesel ban, many will now turn their attention to the autumn budget, in the hope that measures are introduced to drive the shift to EVs.”
Ian Plummer, commercial director at Auto Trader, said: “Electric vehicle sales surged in September to claim a 20%-plus share of the market, in the key plate-change month for the industry, but it still won’t be enough for many manufacturers to hit sales targets under the Zero Emissions Vehicle mandate.
“Record discounts are driving the interest as brands and retailers do all they can to stimulate sales, showing once again just how sensitive the market is to financial incentives, and the importance of overcoming the current EV cost barrier.
“These efforts are also reflected in the strongest interest in new EVs on our platform for more than two years, a good sign that the remaining months of 2024 should also see strong new EV sales.
“That said, there’s still much to do to drive further levels of interest and actual sales – and discounts can only last so long.
“Given affordability is such a key driver of purchase, other measures are needed to help buyers make the switch to electric cars which still carry a 30% price premium over their ICE counterparts.
“More affordable EVs are hitting the market from both established and new brands alike, but we need to see further levels of support from Government if we’re to hit the new regulatory targets without inflicting significant damage to the industry.”