June sees 45 per cent increase in plug-in and hybrid sales

The UK new car market fell by -3.5 per cent this June compared to last June, with 234,945 new cars joining the roads, according to the latest figures by the Society of Motor Manufacturers and Traders (SMMT).

Plug-in and hybrid registrations grew 45 per cent, as did petrol, which was up 12.3 per cent. Diesel sales continue to fall, with a -28.2% drop. The SMMT believes this is a result of continuing consumer uncertainty over future policy towards this technology.

Demand from larger fleets fell -6.4%, but organisations with fewer than 25 vehicles saw an 11.3 per cent uplift in demand after an 11-month slump. Private demand was largely flat, at -0.6%.

Smaller cars remained most popular, with Supermini and Lower Medium vehicles taking a combined 57.4% market share. However, Dual Purpose was the fastest growing segment, with demand up by some 16.4% - 6,710 more than in the same month last year. Dual Purpose, Executive (+4.3%) and Luxury Saloon (+1.3%) were the only segments to register growth in June.

Mike Hawes, SMMT Chief Executive, said, “Despite a rocky first six months for the new car market, it’s great to see demand for alternatively fuelled vehicles continue to rise. Given these cars still represent only one in 20 registrations, however, they cannot yet have the impact in driving down overall emissions that conventional vehicles, including diesels, continue to deliver.

“Recent government statements acknowledging the importance of petrol and diesel are encouraging. However, we now need a strategy that supports industry investment into next generation technologies and puts motorists back in the driving seat, encouraged to buy the car that best suits their needs – whatever its fuel type.”