New car sales rose 25.8pc in June

The latest figures from the Society of Motor Manufacturers and Traders showed an 11th consecutive month of growth as the industry gradually overcomes the pandemic-induced supply chain shortages that constrained production for much of the previous two years.

Growth in the month was driven predominantly by large fleet registrations, up 37.9 per cent to 92,699, reflecting the normalisation of supply. Private demand grew more modestly, up 14.8 per cent to 79,798.

Longbridge-based MG, which has its cars made abroad, enjoyed a 41,4 per cent rise to 7,607 with Land Rover sales up 11.7 per cent to 4,633 and Jaguar up 26.4 per cent to 1,466.

Volkswagen was the best-selling brand at 15,185 – up 30.2 per cent – with the Tesla Model Y the overall top-selling model at 5,539.

Deliveries of petrol cars increased 22.7 per cent, to remain the most popular powertrain, while those of hybrids and plug-in hybrids also rose, by 40.1 per cent and 65.5 per cent respectively. Diesel registrations were down 13.5 per cent.

Battery electric vehicle registrations grew again, with the segment up 39.4 per cent as 31,700 buyers chose to get behind the wheel of a zero emission car – 17.9 per cent of the total market.

Almost a million (949,720) new cars joined UK roads in the first six months of 2023, with total registrations up 18.4 per cent.

Mike Hawes, SMMT chief executive, said: “The new car market is growing back and growing green, as the attractions of electric cars become apparent to more drivers. But meeting our climate goals means we have to move even faster.

"Most electric vehicle owners enjoy the convenience and cost saving of charging at home but those that do not have a driveway or designated parking space must pay four times as much in tax for the same amount of energy.

"This is unfair and risks delaying greater uptake, so cutting VAT on public EV charging will help make owning an EV fairer and attractive to even more people.”

Mark Oakley, director of AA Cars, said: “The surge in new car sales still has more miles left to run, having posted an 11th successive month of increasing year-on-year registrations.

“The easing of supply chain pressures, coupled with four straight months of increasing UK car production, is helping to get keys into drivers’ hands at a much quicker rate.

"That sales continue to increase on an annual basis despite stubbornly high inflation and rising interest rates points to the resilience of the UK car market.

"EV sales remain a big success story, with sales in June up by nearly 40 per cent compared to last year, but there are signs that the rate of increase is slowing down.

"At 16 per cent of all new car sales, EVs have become a key part of the market but aren’t yet in the driving seat. They still have a way to go to become the dominant force they will need to be when sales of new petrol and diesel cars are banned in the UK in just over six years’ time."