Source: Gasgoo Author: Ramy
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According to industry data released by the Society of Motor Manufacturers and Traders (SMMT) on March 5, Britain’s new car registrations rose 14 % year-on-year in February, the best February single-month record in 20 years, driven by strong demand from fleets and businesses, Reuters reported.
According to the SMMT, new car registrations in the U.K. were 84,996 in February; in the first two months of the year, they climbed 10.3% year-on-year to 227,762.
Generally speaking, February is usually the lowest month of the year for car registrations in the UK, with many consumers choosing to wait until March when new license plates come on sale SMMT said that last month saw positive growth in car registrations in the UK, demonstrating continued strong demand for the latest models in the market. Because March is the busiest month for the market, the long-term outlook will become clearer this month.
Pure electric vehicle registrations in the UK continued to grow last month, up nearly 22% year-on-year to 14,991 units. It is important to note that the growth in pure EVs has come mainly from fleet operators, thanks to government financial incentives.The SMMT notes that the lack of financial incentives is limiting the appeal of pure EVs to private consumers. To date, private consumers account for only 18.2% of all pure EVs registered in the UK this year.
Jeremy Hunt, the Chancellor of the Exchequer, is reportedly due to announce the UK’s spring budget for 2024 on March 6 local time.The SMMT said, “By halving VAT on new electric cars for three years, amending the proposed reforms to Vehicle Excise Duty (VED), and reducing VAT on public charging services, the budget (plan) is an opportunity for the Chancellor of the Exchequer to stimulate demand. ” The trade body has been calling on the government to halve VAT on the purchase of electric cars in order to drive private consumers towards electric vehicles.
Image source: SMMT
