Breaking Down the Stories of 2023’s UK Car Sales Numbers

Every year, car enthusiasts eagerly await the release of the SMMT’s annual end-of-year new car registrations. These numbers reveal the true performance of car makers, leaving no room for hiding. The figures for 2023 did not disappoint, showcasing a year filled with interesting stories and trends.

Market Overview

In 2023, the UK car market experienced an 18% increase in sales, primarily driven by fleet orders. Despite challenges like falling consumer confidence and a cost of living crisis, the industry managed to thrive.

Top Performers

Volkswagen once again claimed the top spot in the UK, while Ford saw a 14% increase in sales, securing second place. However, Ford’s success may not be repeated as the Ford Fiesta has been discontinued.

Audi made a strong comeback after the chip crisis, achieving 25% growth and comfortably leading the premium sales charts. Audi outsold BMW by 26,000 units and Mercedes-Benz by 50,000 units in their first year of agency sales. The competition between these three brands for the top spot has faded, raising questions about what defines a “premium” brand in today’s market.

Other Notable Performers

Toyota, Vauxhall, and Kia all broke through the 100,000 sales barrier and experienced growth in 2023. Kia’s entrance into the 100,000 club was a significant milestone just a year ago, but it now feels like a normal occurrence due to the brand’s strong presence in the UK.

Surprisingly, Tesla’s sales declined by 10%, making it one of only seven brands to experience a decrease in sales. Stellantis also faced challenges, with Alfa Romeo, Fiat, DS, and Abarth all seeing a decline. However, Vauxhall and Peugeot, Stellantis’ largest brands, achieved nearly 20% growth compared to 2022.

BYD, a new entrant in the UK market, surpassed Maserati and Smart in sales and came close to matching brands like Alfa Romeo, Genesis, Ssangyong, and Bentley. With its strong performance, BYD is expected to follow in the footsteps of MG and achieve exponential growth in the coming years.

MG continued its impressive sales streak, surpassing 80,000 units and achieving 59% year-on-year growth. The brand is now within reach of heavyweight competitors like Hyundai, Nissan, and Mercedes. It wouldn’t be surprising if MG reaches the 100,000 sales mark soon.

New Entrants

In addition to BYD, Ineos and Fisker made their debut on the sales charts in 2023. Ineos registered 877 Ineos Grenadiers, while Fisker sold 160 Oceans in December. The UK launch of Fisker is imminent.

GWM Ora also entered the market in 2023 but failed to make a significant impact, with fewer than 1000 Funky Cats registered throughout the year.

Brand Highlights

Land Rover overcame its supply problems and achieved 24% growth with over 50,000 sales, surpassing Tesla and Mini.

Jaguar experienced a 17% growth with 14,000 sales, staying ahead of the rapidly growing Polestar. Jaguar aspires to become a brand like Polestar in the future.

Porsche achieved 32% growth, positioning itself just behind mainstream brands like Citroën, Honda, Dacia, Cupra, Mazda, and Suzuki. Porsche outperformed brands like Lexus and Fiat.

Other brands that experienced impressive growth after a period of stagnation were Renault (+32%), Volvo (+37%), Mazda (+21%), Seat (+45%), and Skoda (+43%). These brands managed to recover lost ground during the chip shortage.

Future Outlook

The SMMT projects a 4% sales growth for 2024, a smaller increase compared to the 18% growth of 2023. This modest growth may not lead to as many success stories for car makers, especially with the entry of ambitious new players in the market. The stage is set for an exciting and competitive year ahead.