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Society of Motor Manufacturers and Traders

Business confidence ‘drives cautious recovery’ in car registrations

 960 640 Stuart O'Brien
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With the year’s first full month of showroom openings, new car registrations in May reached 156,737 units, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).

The total represents an almost eightfold increase on the same month last year, but is down -14.7% on pre-pandemic May 2019, and -13.2% on the 10-year May average.

Uptake was in line with the most recent industry outlook, published in April, which sees the sector anticipating around 1.86 million registrations by the end of the year – with 723,845 achieved so far.

Against a more positive economic backdrop – including OECD forecasting a 7.2% increase in UK GDP during 2021 – fleet registrations grew more than twice as fast as private purchases in May.3 Large fleets accounted for 50.7% of all new vehicles hitting the road, demonstrating improving business confidence compared to the same month last year.

In terms of segments, dual purpose vehicles saw a small decline in market share in the month, down to 26.7%, leapfrogged by lower medium cars which rose to 27.8%. Superminis remained Britain’s most popular car choice, with a 31.1% share.

Battery electric vehicle (BEV) market share declined from 12.0% a year ago to 8.4% in the past month, although the May 2020 performance was distorted by lockdowns when new cars could only be purchased through click and collect or delivery, giving rise to variable purchasing patterns.

Looking more broadly across 2021, plug-in vehicles now comprise 13.8% of new car registrations, up from 7.2% a year earlier, with the most rapid growth seen in plug-in hybrid (PHEV) derivatives. Pure petrol and mild hybrid petrol cars so far account for 60.4% of registrations, while pure diesel and mild hybrid diesels took a 18.0% share year to date, compared to 64.6% and 22.4% last year.

Meanwhile, total registrations for 2021 sit at 296,448 fewer units, or -29.1% less, than the average recorded across January to May during the last decade, evidence of the scale of the recovery still needed given the impact of Covid on the market.

Mike Hawes, SMMT Chief Executive, said: “With dealerships back open and a brighter, sunnier, economic outlook, May’s registrations are as good as could reasonably be expected. Increased business confidence is driving the recovery, something that needs to be maintained and translated in private consumer demand as the economy emerges from pandemic support measures. Demand for electrified vehicles is helping encourage people into showrooms, but for these technologies to surpass their fossil-fuelled equivalents, a long term strategy for market transition and infrastructure investment is required.”

Motorparc: Total vehicles on UK roads falls to 40.35m

 960 640 Stuart O'Brien
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Vehicle numbers on UK roads fell to 40,350,714 in 2020, according to Motorparc data released today by the Society of Motor Manufacturers and Traders (SMMT), the first time the total number has fallen since the global financial crisis of 2009.

As the pandemic stifled new vehicle uptake, the average age of cars on UK roads is now the highest on record at 8.4 years. Van uptake, however, has grown to the highest level in history, accounting for 11.4% of all vehicles on the road.

The latest parc data illustrates that, for the second consecutive year, there were more than 35 million cars registered on UK roads (35,082,800), although that figure represents a modest -0.2% dip as Covid impacted new volumes entering the market.

Light commercial vehicles (LCVs) – the only vehicle type to see an increase – saw 1.7% growth over the past year, up to a new record high of 4,604,861 vehicles. Many of these have been instrumental in supporting the nation during the pandemic, providing support to the NHS, and delivering food and goods across Britain.

Meanwhile, the number of heavy goods vehicles on our roads declined by -3.1% to 589,445 units. Bus and coach numbers saw the most significant fall at -10.7% to 73,608, as the pandemic dramatically reduced already-declining passenger numbers causing fleet operators to pause new fleet purchases and take unused vehicles off the road.

With showrooms closed for large periods of 2020 due to lockdowns, fewer new cars were registered, resulting in the oldest average car fleet since records began. The average car on UK roads was built in 2011, while almost 10 million cars have been in service since 2008 or earlier. While this is testament to the durability and quality of modern vehicles, an ageing fleet risks stalling the UK’s attempts to reduce emissions.

A new car from 2020 emits, on average, 112.8g/km of CO2, which is 18.3% better than a model registered in 2011. Fleet renewal is essential if the UK is to reach its net zero target, with both conventional and alternatively fuelled vehicles having a significant role to play in the transition.

As part of the journey towards zero emission motoring, the number of battery electric vehicles (BEVs) on UK roads increased by 114.3% to a record high of 199,085, while plug-in hybrid vehicles (PHEVs) also saw their numbers increase by 35.2% to 239,510.

However, combined, they represented just 1.3% of all cars on our roads – emphasising the importance of replacing older vehicles with newer, cleaner ones. Hybrid electric vehicles (HEVs) saw their numbers grow by a fifth to 621,622 cars. Petrol car volumes remained stable, down -0.2%, with diesel falling -2.3%. Combined, internal combustion engine (ICE) models accounted for 97.1% of the total parc – or 34,018,599 units.

Britain’s favourite car types are still the supermini and lower medium segments which account for six in 10 cars in service, at 11,620,733 and 9,256,839 units respectively. Dual purpose vehicles remain a distant third, with 4,619,061 in use but now account for 13.2% of cars on the road, as consumer tastes and demand shift.

Record numbers of vans on UK roads

 960 640 Stuart O'Brien
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Commercial vehicles now account for 13.1% of all vehicles on the road in Britain – the highest recorded this century, according to figures released by the Society of Motor Manufacturers and Traders (SMMT).

SMMT’s annual automotive census has revealed that, as of the end of 2020, there were 4,604,861 vans, 589,445 trucks, and 73,608 buses and coaches on the road, out of a total of 40,350,714 vehicles in use.

Truck numbers declined by -3.1% to return to levels last recorded in 2015, while bus and coach units are at their lowest since records began, a consequence of the significant drop in passenger numbers caused by the pandemic.

More positively, vans recorded their 11th year of consecutive growth, increasing by 1.7% year-on-year as an upsurge in home delivery and construction stimulated demand. Many of these vehicles have also been instrumental in supporting the nation during the pandemic, providing support to the NHS, and delivering food and goods across Britain.

The average age of commercial vehicles has also increased, with significant implications for emissions targets and air quality goals. The average van is now just under eight years old, with a considerable number of older vehicles still in operation – including around 725,000 that were first registered in 2005 or earlier.

Meanwhile, at 7.4 years old, the average truck would predate the introduction of Euro VI, meaning they would be fined for entering the London Ultra Low Emission Zone,the Bath Clean Air Zone and, from next month, would also incur penalties in Birmingham. Buses, meanwhile, are now, on average, more than a decade old.

Manufacturers have invested massively to provide a wide range of vehicles with a variety of fuel options – meaning operators are spoiled for choice when renewing their fleet.

With the end of sale of new petrol and diesel vans scheduled for 2030, plug-in van uptake continues to grow but remains far lower than that experienced in the car market.

There are now 14,021 battery electric (BEV) and plug-in hybrid (PHEV) vans in service, accounting for 0.3% of all operational vans – four times lower than the proportion of BEV and PHEV cars.

Based on the SMMT data, Slough is Britain’s zero-emission van capital, having both the highest percentage of electrified van registrations (2.2%) and the highest total number (2,087).

Mike Hawes, SMMT Chief Executive, said: “The past year has highlighted how much Britain relies on its commercial vehicle parc. With less than nine years to go until the end of sale of new petrol and diesel vans, much needs to be done to avoid a long fossil fuel hangover from operators resisting the switch. Fleet renewal must be a high priority for the commercial vehicle sector and the government’s Bus Back Better strategy must be implemented immediately to reverse the decline in bus operations.”

UK’s most popular new car colour? Grey of course

 960 640 Stuart O'Brien
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Grey retained its position as the UK’s favourite new car colour in 2020, according to the latest figures released today by the Society of Motor Manufacturers and Traders (SMMT).

While it was a tough year for new car registrations overall, 397,197 grey units were sold over the course of 2020, which means that just shy of a quarter (24.3%) of all new cars sold were painted in the shade.

Black and white took second and third place overall, completing a monochrome podium, with more than six in ten (61.6%) of all new cars entering British roads in 2020 painted in these three colours. The rest of the top 10 remained unchanged, apart from yellow and bronze which reversed places as yellow increased its market share by 50% but equivalent to only 6,816 sales. Red saw its registrations drop below 200,000 for the first time in a decade to 147,222, recording its worst tally since 1997.

While the top colour for both petrol and diesel cars was grey, with 248,182 and 84,489 registered in the colours respectively, white was the most in-demand tint for zero emission battery electric vehicles (BEVs) with 25,689 painted in it whilst black was the most popular shade for plug-in hybrids (PHEVs) with 17,989 registered. It was a record year for these electrified vehicles, which together accounted for more than one in 10 registrations – up from around one in 30 in 2019.

Unlike 2019, which saw Scotland and the Channel Islands bucking the national trend, in 2020 grey was the unanimous colour of choice across the UK. Indeed, the only counties to not opt for grey cars as their number one choice were the Isle of White and Borders, where blue was the most popular tint, and Strathclyde which saw white take the top spot. Leicestershire, meanwhile, was the most popular location for pink cars, with 23.7% of the UK’s total registered in the region, while buyers in the West Midlands snapped up the most orange cars.

While white was the most popular shade for the mini segment, luxury saloons and executive cars were most likely to be black. Overall, there were 106 different distinct colours registered throughout the year with the least popular colour nationwide being maroon.

Mike Hawes, SMMT Chief Executive, said: “2020 was a pretty dark year for the automotive industry and having grey as the top new car colour probably reflects the atmosphere. The sector, however, continues to provide valuable mobility, from vans delivering essential goods to private cars helping key workers do their jobs, and click and collect offers a lifeline for the industry, helping to keep manufacturing going. It cannot, however, replace the showroom experience and the sector has taken great steps to ensure dealers are Covid-secure with the flexibility to manage customer appointments so car buyers can choose a new car and colour in a safe environment.”

Alternative fuel cars hit record sales, but overall market falls

 960 640 Stuart O'Brien
By:

The UK new car market fell -1.3% in November, with 156,621 models registered, according to figures released by the Society of Motor Manufacturers and Traders (SMMT).

This maintains the downward trend for new car registrations throughout 2019, as multiple factors, including weak business and consumer confidence, economic uncertainty and confusion over diesel and clean air zones, combined to affect demand.

In November, the decline was driven primarily by weak private demand, registrations down -6.1%, while the business market also fell, down -3.2%, but fleet registrations fared better, up 2.8%. For the second consecutive month, total alternatively fuelled vehicle (AFV) registrations reached a record market share, with more than one in 10 cars joining UK roads either hybrid, plug-in hybrid or pure electric – equivalent to 16,052 cars. 

Demand for the latest battery electric cars surged by 228.8%, with 4,652 registered, while the markets for plug-in hybrids and hybrids also rose by 34.8% and 15.0% respectively. Elsewhere, petrol grew 2.0%, taking the lion’s share of all registrations (62.2%), as diesel fell -27.2%. Year-to-date, the overall UK new car market is down -2.7%, with 2.2 million cars registered, in line with current industry forecasts.

Mike Hawes, SMMT Chief Executive, said: “These are challenging times for the UK new car market, with another fall in November reflecting the current climate of uncertainty. It’s good news, however, to see registrations of electrified cars surging again, and 2020 will see manufacturers introduce plenty of new, exciting models to give buyers even more choice. Nevertheless, there is still a long way to go for these vehicles to become mainstream and, to grow uptake further, we need fiscal incentives, investment in charging infrastructure and a more confident consumer.”

The key data in charts:

New van sales down 23.5% in September

 960 640 Stuart O'Brien
By:

The UK new light commercial vehicle (LCV) market declined -23.5% in September, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).

41,216 LCVs were registered in the month, down some 12,632 units on September 2018, as regulatory changes, coupled with economic and political uncertainty, impacted the market.

Registrations of larger vans weighing 2.5-3.5 tonnes fell -35.2% in the month while conversely the market for small vans weighing less than 2.0 tonnes was up 12.3%, with medium vans weighing 2.0-2.5 tonnes also up (16.8%). Meanwhile, the pickup and 4×4 segments both fell, -18.8% and -48.4%, although combined they accounted for less than a fifth of the whole market.

It should be noted that September’s losses follow a period of sustained growth, with LCV registrations rising in every month of 2019 to August, as buyers responded to a wide range of deals and a raft of new models. In the year-to-date the market is up 4.5%, with more than 286,000 new vans hitting the road, most (62.2%) weighing 2.5-3.5 tonnes.

Mike Hawes, SMMT Chief Executive, said: “These figures are unusual as LCV registrations have been growing this year, however the impact of regulatory changes, coupled with ongoing political and economic uncertainty, has distorted the market in September. Registrations for the year to date are still healthy, however, but for this to be maintained we need business confidence restored and strong economic growth so that businesses invest in their fleets.”

Image by cdz from Pixabay

UK front runner in £62 billion self-driving car race

 960 640 Stuart O'Brien
By:

The UK is in pole position in the global race to market for connected and autonomous vehicles (CAVs), with a £62 billion boost to the UK economy by 2030 up for grabs.

That’s according to a report published today by the Society of Motor Manufacturers and Traders (SMMT) and Frost & Sullivan, which analyses the wide-ranging societal and economic benefits to be achieved by gradually increasing CAVs on our roads.

Advanced driver assistance systems (ADAS) such as Autonomous Emergency Braking and Collision Warning are already available on the majority of new cars registered in the UK.

Combined with the gradual introduction of automated vehicles from 2021, this will deliver massive safety benefits, the report claims.

Over the next decade, the technology is set to prevent 47,000 serious accidents and save 3,900 lives. At the same time, some 420,000 new jobs will be created, including in the automotive industry and other sectors such as telecoms and digital services.

Driving commuters, we’re told, will gain back the equivalent of a full working week thanks to more ‘downtime’ and smoother traffic flows during their commute.

Connected and Autonomous Vehicles: Winning the Global Race to Market identifies three critical areas that will help CAV rollout and in which the UK has a significant advantage: supportive regulation, enabling infrastructure and an attractive market.

With the world’s first insurance legislation for autonomous vehicles already in place, the most comprehensive review of road transport underway and more miles across motorways, urban and rural roads able to be driven autonomously, the reports says the UK is already ahead of global rivals in its readiness to commercialise self-driving technology.

It ranks the UK above other major automotive countries, including Germany, US, Japan and South Korea as a global destination for the mass rollout of CAVs.

To realise this potential, however, the reports says conditions must be right, and sustained support from government will be vital – particularly if we are to meet its ambition to get autonomous vehicles on to UK roads in 2021.

The report’s key recommendations for government include updating road traffic laws, improving 4G coverage across all road networks, encouraging local authorities to work with industry to implement urban mobility services and influencing future harmonisation of international regulations to ensure these new vehicles can operate seamlessly between the UK and abroad.

Crucially, however, the UK’s departure from the EU must be orderly with a deal that supports both the industry and technological collaboration, especially in data. A ‘no deal’ Brexit will result in lasting damage to the UK’s reputation as a politically stable destination for inward investment, putting the benefits identified in the report at risk.

Mike Hawes, SMMT Chief Executive, said: “A transport revolution stands before us as we move to self-driving cars and the UK is in pole position in this £62 billion race. Government and industry have already invested millions to lay the foundations, and the opportunities are dramatic – new jobs, economic growth and improvements across society. The UK’s potential is clear. We are ahead of many rival nations but to realise these benefits we must move fast.

“Brexit has undermined our global reputation for political stability and it continues to devour valuable time and investment. We need the deadlock broken with ‘no deal’ categorically ruled out and a future relationship agreed that reflects the integrated nature of our industry and delivers frictionless trade.”

Sarwant Singh, Senior Partner and Head of Mobility, Frost & Sullivan, said: “The UK already has the essential building blocks – forward thinking legislation, advanced technology infrastructure, a highly skilled labour force, and a tech savvy customer base – to spearhead CAV deployment over the next decade. However, it will require sustained and coordinated efforts by all key stakeholders, especially the government, to realise the significant annual economic benefits forecast for the UK from CAV deployment by 2030 and drive the vision of safe, convenient and accessible mobility for all.”

LCV demand strong in early-2019

 960 640 Stuart O'Brien
By:

The Society of Motor Manufacturers and Traders (SMT) says the new light commercial vehicle (LCV) market grew 8.6% in January, with more than 22,000 new vehicles in this category joining UK roads in the first month of 2019.

The findings equate to an uplift of 1,761 vehicles as compared to January 2018.

Commercial vehicles weighing less than  2.0 tonnes also saw an increase of 31.7%, along with pickups (13.4%). Demand for larger vans also grew by 7.1%.

However, medium sized vans weighing 2.0-2.5 tonnes fell by 3.9%.

New models and proactive sales campaigns have been attributed to the rise in demand.

Discussing the findings, Mike Hawes, chief executive SMMT, said: January’s positive performance follows a mixed 2018, which finished on a particularly poor December, so some bounce-back was to be expected. Further fluctuations in demand are predicted over the coming months as the UK’s post-Brexit future remains uncertain. 

“Operators need stability to invest and renew their fleets, which now depends on government providing the right conditions starting with removing the threat of ‘no-deal’.”

UK heavy truck market falls 7.0% in Q3 2018

 960 640 Stuart O'Brien
By:

The UK new heavy goods vehicle (HGV) market declined by 7.0% in Q3 2018, according to figures from the Society of Motor Manufacturers and Traders (SMMT).

9,853 heavy trucks were registered between June and September, which the SMMT says is a result of fluctuating fleet buying cycles and ongoing falls in business confidence.

Registrations of rigid trucks declined in the third quarter, down -9.8%, with a -6.0% decrease in the >6-16T segment and a -11.9% decline in the >16T segment.

Meanwhile, demand for artic vehicles also fell, by -3.1% to 4,246 units. Tractors remained the most popular vehicle, despite a -4.1% drop in demand, accounting for more than two fifths (42.8%) of the market. Skip loaders and box vans were the only segments to record growth in the quarter, up 11.1% and 2.4% respectively.

It was a similar picture in the year-to-date figures, with overall HGV registrations falling -7.5% to 30,308 units, with declines in demand for both rigids (-9.9%) and artics (-4.1%).

Mike Hawes, SMMT Chief Executive, said: “While fluctuating fleet buying cycles are a natural feature of the HGV market, given this quarter marks the fifth consecutive decline, there is no doubt that a fall in operator confidence is having an impact on registrations of these big ticket purchases. Government must address the current economic and political uncertainty if we are to get more of these high-tech, ultra-low emission vehicles on to our roads, and to ensure the sector can prosper.”

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