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Gloucestershire Business News

Car sales rise triggers SMMT warning

New car sales have shifted up a gear – but a bump in the road may lie ahead.

Data in today from the Society of Motor Manufacturers (SMMT) show Britain's new car market accelerated 26.2% in February, with battery electric deliveries rising by 18.2%. In all, plug-in cars took almost a quarter of market share.

With 74,441 new cars joining Britain's roads last month, the SMMT says it's notable that the month before the new plate on 1st March didn't suffer a typical stall. An easing of supply chain shortages also helped steer the market closer to pre-pandemic levels, down just 6.5% on the same month in 2020.

So how does the sales pie slice up? While we see near universal growth across the market, deliveries to private buyers are up 5.8% and those to large fleets by 46.2%. Underlining caution in the business sector though, business registrations increased by 0.7% - equivalent to just nine units.

In terms of consumer taste, growth was evident in all but two segments, but registrations of executive and luxury saloon fell by 15.4% and 6.3% respectively. Of all fuel types, hybrid electric vehicles (HEVs) recorded the most significant growth, at 40.0%, followed by petrol, up 35.8%. Diesel registrations, meanwhile, dropped by 7.0%.

Now in the fast lane, "zero-emission capable" vehicles, showed plug-in hybrids (PHEVs) rising 1.0% and battery electric vehicles (pure EVs) posting another strong month, sales rising 18.2%. One in six new vehicles sold today is electric.

But amid such positivity, the SMMT sounds a note of caution.

Mike Hawes, SMMT Chief Executive, said: "After seven months of growth, it's no surprise that the UK automotive sector is facing the future with growing confidence. It is vital, however, that government takes every opportunity to back the market, which plays a significant role in Britain's economy and net-zero ambition.

"As we move into 'new plate month' in March, with more of the latest high-tech cars available, the upcoming budget must deliver measures that drive this transition, increasing affordability and ease of charging for all."

With nearly half a million (488,000) PHEVs and BEVs expected to join Britain's roads in 2023, manufacturers are bringing more than 40 new plug-in electric models to the market. This will inevitably increase demand for charging infrastructure, however, and while the (Department for Transport's) new £56 million Local Electric Vehicle Infrastructure (LEVI) capability funding is welcome, there remains a clear requirement for binding targets that ensure chargepoint rollout keeps pace.

The Spring Budget, says Hawes, is an important opportunity to shape Britain's net zero progress and deliver an equitable transition for all.

"This should include a long-term plan for chargepoint investment, aligning VAT on public charging with domestic energy use, and reviewing the Vehicle Excise Duty premium that will unfairly penalise EV buyers switching to this inevitably more expensive technology in the future."

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