UK new car market continues freefall, worst October since 1991

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ew car registrations have fallen for the fourth consecutive month, with a decline of 24.6% to 106,265 units compared to October last year, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).

Plug-in vehicle uptake remained positive in the month before COP26, with battery electric vehicles (BEVs) equalling their September market share of 15.2% with 16,155 units, while plug-in hybrid vehicles (PHEVs) grew to 7.9% or 8,382 units.

Plug-in vehicles now account for 16.6% of all new car registrations in 2021, which, when joined by a further 9.1% from hybrid electric vehicles means that 25.7%, or more than a quarter of the new car market, has been electrified year-to-date.

In fact, plug-in vehicle uptake rates have accelerated so rapidly that SMMT forecasts that more will join Britain’s roads in 2021 than during the whole of 2010 to 2019 combined. Businesses and consumers are expected to take up around 287,000 of the latest zero-emission capable cars by the end of the year.

Despite this strong performance in electrified vehicle registrations, the overall market’s monthly performance was the weakest seen since October 1991. Demand from large fleets fell by a substantial 40.4%, driving most of the decline. Private demand fell by a more modest 3.3%, although this apparent small decline is compared against weak consumer uptake during the pandemic-affected October 2020.

Looking ahead, the latest SMMT forecast has been revised downward by 8.8% to 1.66m units, in light of the on-going supply issues and deteriorating economic outlook. This would see 2021 finish 1.9% or some 30,000 units up on 2020, but some 650,000 units down on 2019’s pre-pandemic 2.3m performance.