Plug-ins drive new car market bounce

The Society of Motor Manufacturers and Traders has reported that one in five new vehicle registrations in January were plug-ins. It expects that to increase to one in four during 2023.

Latest figures reveal that hybrids comprised 14.4% of new car registrations during the month, increasing volumes by 40.6%, while battery electric vehicle (BEV) registrations rose 19.8% to reach 17,294 units, or 13.1% of new registrations.

Demand for plug-in hybrids also rose to account for 6.9% of new car sales.

This growth in the plug-in sector drove a wider market bounce, with new car registrations increasing by 14.7% in January to reach 131,994 units, making it the best start to the year since before Covid-19 and the sixth successive month of expansion.

Mike Hawes, SMMT Chief Executive, said, “The automotive industry is already delivering growth that bucks the national trend and is poised, with the right framework, to accelerate the decarbonisation of the UK economy. The industry and market are in transition, but fragile due to a challenging economic outlook, rising living costs and consumer anxiety over new technology. We look to a Budget that will reaffirm the commitment to net zero and provide measures that drive green growth for the sector and the nation.”

Meanwhile, UK new light commercial vehicle (LCV) registrations grew to 22,098 units in January, a year-on-year increase of 25.8%.