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Discounted BEVs Only Bright Spot in Declining U.K. November New-Vehicle Registrations


Discounted BEVs Only Bright Spot in Declining U.K. November New-Vehicle Registrations

U.K. new-vehicle registrations continue their slide with heavily discounted BEVs providing a small boost.

Battery-electric-vehicles were the only growth sector of new-vehicle registrations in November in the U.K. as automakers heavily discount inventory in an attempt to meet government zero-emission sales targets.

However, while the latest figures from the Society of Motor Manufacturers and Traders (SMMT) show BEV registrations up 58.4% to 38,581 units, representing 25.1% of the market, overall registrations fell 1.9% to 153,610.

The industry representative body estimates automakers spent £4 billion ($5.1 billion) on discounts for their BEVs as they try to avoid punitive government fines for missing this year's target of 22% of their products as all-electric.

Motorist advocacy group, the Automobile Assn., also puts the overall drop in new-vehicle registrations down in part to a growing trend of cash-strapped consumers turning to a booming secondhand car market seeking better deals.

This is reflected in private-buyer new-vehicle registrations continuing a two-year decline, down 3.3% to 58,496 units, accounting for 38.1% new registrations. Fleet purchases, now making up 59.9% of the market, also fell 1.1% to 91,993 units, while low-volume business demand rose 5.2% to 3,121.

Gasoline-powered vehicles maintain their position as the most popular vehicle choice albeit down 17.7% in November while diesel cars fell 10.1%. Hybrid and plug-in hybrid uptake also declined, by 3.6% and 1.2% respectively.

While the SMMT says the month's BEV registrations reach government-mandated targets, sales remain weaker than the industry had anticipated this far into the electrification transition and are on course to miss this year's overall target with BEV market share at just 18.7%.

It points out that, according to the latest industry outlook, BEV registrations will need to grow by an additional 53% in 2025 if next year's 28% mandated target is to be met. That's equivalent to 90,000 more businesses and consumers making the switch than the industry outlook expects.

Mike Hawes, SMMT chief executive, says: "Manufacturers are investing at unprecedented levels to bring new zero emission models to market and spending billions on compelling offers. Such incentives are unsustainable - industry cannot deliver the UK's world-leading ambitions alone.

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