This month, we’ve dived into the latest data from the SMMT (Society of Motor Manufacturers and Traders) to understand the shifts in the UK car market. Here’s a breakdown of what we found:
New Car Market Highlights:
Percentage of all New Cars First half 2024 vs 2023
EVs (Pure electric vehicles).
HEVs (Mild Hybrids which cannot run on electric only).
PHEVs (Plug in hybrids able to run on pure electric for some time)
Key Observations:
- Petrol: Still the go-to choice for many, petrol cars make up 54.4% of new car sales, with a modest 0.8% increase. This indicates that while alternatives are rising, petrol remains a strong contender.
- EVs: Battery Electric Vehicles are gaining ground, now making up 17.2% of new car sales—a remarkable 10.5% increase. This surge signals growing consumer confidence in EVs and the expanding charging infrastructure.
- HEVs: Hybrid Electric Vehicles are also on the rise, with a 17.9% increase, representing 13.8% of new car sales. They offer an appealing mix of fuel efficiency and range flexibility.
- PHEVs: Plug-in Hybrids have seen an impressive 24.9% jump, now at 8.1%. Buyers seem to appreciate this middle ground between traditional fuel and full electric.
- Diesel: Once a dominant force, diesel now accounts for only 6.5% of new car sales, a decline of 13%. This significant drop highlights the shift in consumer preferences and the impact of environmental regulations.
Used Car Sales: First Half of 2024 vs 2023
Percentage of all used car sales vs 2023
Key Observations:
- Petrol & Diesel: Still dominant in the used market. Although petrol and diesel vehicles have seen a slight decline from 94.6% to 92.6%. This shows a gradual shift as buyers start considering alternative options. Whilst this decline is small in percentage terms, it’s worth understanding that it equates to approximately 160k less vehicles.
- HEVs: Mild Hybrids in the used market have increased significantly, from 2.8% to 3.9%. This suggests that hybrids are becoming more attractive for second-hand buyers looking for a balance between traditional and electric. It could also just be that there are more mild hybrids in the used model ranges than before.
- EVs: The used electric vehicle market is showing strong growth, with sales increasing by around 46%, moving from 1.5% to 2.2%. The overall percentage is still very small though. But this uptick indicates a growing acceptance of EVs in the second-hand market as they become more accessible. ‘If’ this growth rate continues, then you will see EVs gain a significant share on the market.
- PHEVs: Used Plug-in Hybrids have seen steady growth, from 0.9% to 1.1%. While the increase is slower, it shows a consistent interest in this category. Also, seeing as they are the fastest growing segment of new car sales, we’d expect this growth in the used market to accelerate as the newer PHEVs with longer electric range enter the second hand market.
What Does This Mean?
These numbers indicate a market in transition. New car buyers are increasingly opting for electric and hybrid options, driven by environmental concerns, government incentives, and technological advancements. The used car market, however, still heavily favours petrol and diesel, though electric and hybrid options are steadily gaining ground.
Interestingly, EVs and PHEVs are growing significantly, contrary to some press narratives. The next few years will be fascinating to watch. Given the current growth trends, these segments seem poised to become dominant forces in the market. However, it’s a complex and evolving picture.
In our view, the EV market is set to grow substantially, but a key factor is the ability to charge at home. Home charging can be a game-changer, offering convenience and cost savings. Without this option, depending on where you live, EV ownership can be a real problem.
PHEVs with extended electric ranges are becoming a popular alternative. Many new PHEVs can now achieve 50+ miles on a single charge, which is quite practical considering the average UK car journey is about 8.1 miles. From this standpoint, they make a lot of sense.
But there are a LOT of people not convinced by this move to electric powertrains. This, in our view, is the most critical piece of the puzzle – more so than any governmental interventions.
What are your views? Comment below.
6 thoughts on “The Changing Face of the UK Car Market 2024”
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Changed to a secondhand 2021Toyota Corolla touring sport 1.8 and I absolutely love it. Averaging 64mpg in comfort! 😊
That’s an amazing MPG! That’s a non-plugin hybrid right? Impressive figures!
According to the motoring press and media, electric vehicles sales are dropping. In complete contradiction to this article. Who is right? The SMMT or Motoring critics?
We always choose factual data regardless of what it says, and the SMMT data is just that. On top of that, I don’t know why, but the press have been pushing too much click bait/false information recently. So we NEVER use information from the press, you just can’t rely on it these days.
I’m going to keep with my Peugeot 2008 (2014 MY) Bought it 2018 from Peugeot with 44K on it, now on 90K. Very reliable and very economical, do 7- 8K a year, retirement in 2.5 years and will keep till then and probably get another 2nd hand one then couple of years old. Been a great car. Still in great condition but I’m a bit sad like that, as with maintenance too.
Bought my VW Golf 1.6 new in 2003. It has now done over 150k and is still going strong. The only issues I’ve had is the central locking – individual doors not opening from time to time (a common fault), and a mysterious starting fault which was cured by tweaking something in the ECU to do with idle speed. Definitely will buy another when the time comes but secondhand as new ones are ridiculously expensive.