New car registrations stalled in July as many Brits held off from splashing the cash until Government grants are rolled out.
Latest data from the Society of Motor Manufacturers and Traders (SMMT) shows that 140,154 new cars were registered in July, down 5% on the same month last year. It was the worst July since 2022, and 10.8% lower than pre-pandemic July 2019, "demonstrating the market’s volatility and wider economic setting", said the trade body.
Registrations of battery electric vehicles (BEVs) saw a "modest" rise of 9.1% – it was the second weakest month for growth after April, though, when new tax changes kicked in.
The SMMT believed many buyers held off from purchasing a new electric car in July as they awaited further details of the Government's £650m Electric Car Grant. The first cars confirmed to be eligible for the grant were revealed on Tuesday (Aug 5), and were all Citroen models.
SMMT chief executive Mike Hawes said: “July’s dip shows yet again the new car market’s sensitivity to external factors, and the pressing need for consumer certainty.“Confirming which models qualify for the new EV grant, alongside compelling manufacturer discounts on a huge choice of exciting new vehicles, should send a strong signal to buyers that now is the time to switch.
“That would mean increased demand for the rest of this year and into next, which is good news for the industry, car buyers and our environmental ambitions."
