2024.01.0513:19:00UTC+00UK Car Registrations Surge 17.9% In 2023: SMMT

UK car registrations marked their best performance since the pandemic year of 2019 amid strong demand for fleet vehicles, thanks to easing supply constraints from last year, data from the Society of Motor Manufacturers and Traders, or SMMT, showed on Friday.

Car registrations grew by 17.9 percent to 1.90 million in 2023, up from 1.61 million in 2022.

The UK new car market has recorded its best year since the pandemic, SMMT said.

The strong growth in 2023 was driven entirely by fleet investment as the previous year's supply constraints faded and helped fulfil pent-up demand.

There was an increase of 38.7 percent in fleet deliveries from last year, while business registrations, a small portion of the market, fell by 1.5 percent.

Private consumer demand was almost stable, with 817,673 units, which indicates a 0.1 percent slight drop as cost of living pressures and high interest rates constrain growth.

Battery electric vehicle sales grew 17.8 percent from last year to a record volume of 314,687 units in 2023, but market share dropped slightly to 16.5 percent.

In the case of diesel car registrations, there was a decline of 13.8 percent, while petrol cars showed an increase of 13.5 percent.

Total new car registrations rose for the seventeenth successive month in December, rising 9.8 percent annually to 141,092 units.

"Energised by fleet investment, particularly in the latest EVs, the challenge for 2024 is to deliver a green recovery," Mike Hawes, SMMT Chief Executive, said.

"The government has challenged the UK automotive sector with the world's boldest transition timeline and is investing to ensure we are a major maker of electric vehicles."