The Car Expert reported that in 2023, new car sales to consumers remained stagnant due to the cost of living crisis, while sales to fleets saw continued growth. December of that year marked the worst month for private new car sales since 2008. The Society of Motor Manufacturers and Traders (SMMT) revealed that the UK market saw an 18% increase in 2023 compared to the previous year, attributed primarily to fleet purchases. Sales to fleets accounted for two-thirds of all new car registrations in December, with a 33% increase, while private new car sales declined by 14% compared to the same month in 2022.
Despite signs of increased demand compared to the previous year, sales of electric vehicles (EVs) remained stalled in 2023, with their market share shrinking slightly to 16.5%. The cost-of-living crisis, conflicting government messaging, and anti-EV sentiment have contributed to the dampened appetite for electric cars in the UK. Stuart Masson, Editorial Director at The Car Expert, expressed concern over the lack of consumer demand for both new cars and EVs, calling for a comprehensive education campaign to increase understanding and confidence in the viability of EVs.
The government’s Zero Emission Vehicle (ZEV) mandate requires that 22% of all new cars sold by manufacturers must be zero emission. However, EV sales only accounted for 16.5% of the market in 2023, falling below last year’s market share. To meet the mandated goals, EV sales must increase by a third over 2023 levels. Failure to comply with the mandate may result in some manufacturers pausing sales or facing fines, potentially threatening the survival of certain brands. The industry and government will need to work together to overcome these challenges and promote the broader adoption of electric vehicles.