Deloitte comments on SMMT new car registration figures

Michael Woodward, UK automotive lead, Deloitte, said:

“New car sales in February fell 2.9% compared to the same period last year as diesel and petrol vehicle purchases continued to fall, by 27.1% and 7.3% respectively.

“However, alternatively fuelled vehicles have continued to gain increasing share of the market as consumer adoption continues apace. Sales of electric increased by 243.1% this month, with PHEVs and HEVs each seeing month-on-month growth of 49.9% and 71.9%.

“This year, we expect to see further restructuring of the market, as 52% of UK consumers would consider hybrid or electric as their next vehicle purchase.

“Whilst the inclusion of hybrids in the UK’s incoming ban on new petrol and diesel car sales from 2035 could slow demand in the longer term, sales in February appear undented. For now, hybrids continue to been seen as a stepping stone to going fully electric.

“The key to maintaining growth of EVs will be investment in the supporting infrastructure. Where consumers were once deterred by battery range anxiety, this has now shifted to charging anxiety with access to charging now being seen as the biggest barrier to buying a full EV for UK customers.

“Manufacturers are doing their part by bringing new models to the market and adding range to batteries. What consumers need now is clarity on joined-up, long-term infrastructure development and continued financial incentives could be key to future EV growth.”

End

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