The UK new car market recorded its best February performance in two decades, with registrations rising 14% year-on-year to 84,886 units, according to the Society of Motor Manufacturers and Traders (SMMT). This marks the 19th consecutive month of growth, driven primarily by fleet purchases, which surged 25.2%, while private registrations declined 2.6%.
Electrified vehicle sales also grew, with battery electric vehicle (BEV) registrations increasing 21.8% to 17.7% of the market share. Plug-in hybrid sales saw the highest growth, up 29.1% to a 7.2% market share, while hybrid electric vehicles rose 12.1%. However, BEV adoption remains largely fleet-driven, with private buyers accounting for just 18.2% of new electric vehicle registrations in 2024.
Mike Hawes, SMMT Chief Executive, said:
The new car market’s ability to deliver growth continues with its best February for 20 years and this week’s Budget is an opportunity to ensure that growth is greener. Tackling the triple tax barrier as the market embarks on its busiest month of the year would boost EV demand, cutting carbon emissions and energising the economy. It will deliver a faster and fairer zero emission transition, putting Britain’s EV ambition back in the fast lane.
SMMT urged the UK government to introduce financial incentives in the upcoming Budget to accelerate private BEV adoption. Suggestions include halving VAT on new EV purchases, revising upcoming Vehicle Excise Duty changes, and reducing VAT on public charging. SMMT CEO Mike Hawes emphasized that addressing these tax barriers could further stimulate EV demand, helping Britain meet its zero-emission targets.
