The UK new car market grew 24.4% in August 2023, with 85,657 new vehicles registered, according to figures published by the Society of Motor Manufacturers and Traders (SMMT) on 5 September 20231. Battery electric vehicle uptake rose by 72.3% to take a 20.1% market share, which the SMMT described as an August record and the highest monthly share recorded since December 20221.
The growth was driven by fleet buying. Registrations by large fleets rose 58.4% to 51,951 units, and business registrations grew 39.4% to 1,635 units, while private demand softened by 8.1% against a supply-constrained 2022 market1. The SMMT said the increase of 16,799 units means the sector is now entering a second year of growth, though the market remains 7.5% below pre-pandemic levels1.
Electrified vehicles accounted for almost four in ten new cars reaching the road, at 37.8% of registrations1. Plug-in hybrid uptake rose 70.0% to 7.7% of new registrations, and hybrids increased 6.8% to comprise 10.0% of the market1.
| Powertrain | August 2023 share | Change |
|---|---|---|
| Battery electric | 20.1% | +72.3% |
| Plug-in hybrid | 7.7% | +70.0% |
| Hybrid | 10.0% | +6.8% |
The SMMT said that with less than four months to go until the expected introduction of a Zero Emission Vehicle Mandate, industry still has no sight of the proposed regulation1. It added that businesses benefit from fiscal incentives to switch, but that there is no similar package for the private consumer market1.
"With the automotive industry beginning a second year of growth, recovery is underway with EVs energising the market. But with a new Zero Emission Vehicle Mandate due to come into force in less than 120 days, manufacturers still await the details. Businesses cannot plan on the basis of consultations, they need certainty."
Why it matters for households
The August figures show where the growth in electric cars is coming from. Fleet and business registrations rose sharply while private demand fell, so a household buying on its own was a smaller part of the market than company car schemes were1. The SMMT's own position is that fiscal incentives exist for businesses but not for private buyers1.
For a household considering a battery electric car, the charging arrangements matter as much as the vehicle. The Electric Vehicle Chargepoint Grant for Renters and Flat Owners applies to people who cannot fit a home charger in the usual way, while the Electric Vehicle Homecharge Scheme is now closed to new applicants. The wider registration picture is set out in the UK electric vehicle registration statistics, with charging device numbers in the electric vehicle charging device statistics.
What happens next
The SMMT said the Zero Emission Vehicle Mandate was due to come into force in less than 120 days from its 5 September statement, and that the details had not been published at that point1. No date for publication of the regulation is given in the SMMT release1.