Deloitte comments on SMMT new car registration figures

Jamie Hamilton, automotive partner and head of electric vehicles at Deloitte, said:

“New car registrations grew in October by 26.4% compared to the same period last year, marking a third consecutive month of growth. Whilst sales might typically dip following a new plate month, October’s sales growth was seen across both fleet and private sales - increasing by 47.4% and 7.4%, respectively.

“The figures come at a time of rising interest rates - the base rate reaching 3% just this week – making the cost of financing a new car more expensive, and could soften demand as many consumers delay major purchases. This also comes as manufacturers start to emerge from the microchip shortage and supply chain issues.

“According to the Deloitte Consumer Tracker, just 4% of consumers plan to purchase a car between now and the end of the year.

Electric vehicle demand remains strong

“Demand for electric vehicles continues to remain strong, with volumes up 23.4% compared to October 2021, and reaching a market share of 14.8%. These figures reflect a market with greater selection of vehicles and improved battery range, and also mark growing consumer confidence in charging infrastructure - albeit there is still a long way to go. However, with fuel prices also remaining high, this will undoubtedly be a key consideration for those consumers considering a switch.

“Until recently, financial incentives were also a major factor in consumers’ decision to move across to electric. For the time being, benefit-in-kind taxes still offer significant cost savings for those who can access an EV via their company car scheme.”

-Ends-

Notes to Editors

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