**The Growing UK Car Market: Trends to Watch**
The UK car market is showing signs of growth in 2024, with 22 consecutive months of positive sales figures. While total sales are still below pre-Covid levels by 20%, the focus this year is on the increasing proportion of electric vehicle (EV) sales. The ZEV mandate requires 22% of new car sales to be electric this year, and the current market share for EVs stands at 16.1%, up from 15.7% last year.
**Challenges in EV Sales**
Despite the overall growth in EV sales, there is a concerning gap in private buyer demand. While fleet sales of EVs are on the rise, private buyer sales actually dropped in May. The Society of Motor Manufacturers and Traders (SMMT) is calling for incentives to stimulate private demand in EVs, as manufacturers cannot sustain current levels of support indefinitely.
**Political Support Needed**
With a general election approaching and no clear automotive policy statements from major political parties, the support needed to boost EV sales may not be imminent. The SMMT suggests measures like halving VAT on new EVs and reducing VAT on public charging to increase EV adoption.
**Market Trends and Brand Performance**
Several brands are experiencing shifts in sales performance in 2024. BYD is gaining traction in the UK market, surpassing brands like Alfa Romeo and Polestar. Seat’s market share is growing faster than Cupra’s, while Toyota, Hyundai, Audi, Citroën, and Tesla are facing challenges.
Renault is among the brands seeing significant growth, with a 72% increase in sales year on year. BMW’s sales are up nearly 40%, making it the second-largest car brand in the UK. Ford’s decision to halt Fiesta sales has opened opportunities for other brands like Renault.
**Looking Ahead**
As the UK car market continues to evolve, brands will need to adapt to changing consumer preferences and regulatory requirements. The shift towards electric vehicles presents both challenges and opportunities for manufacturers, requiring strategic planning and innovation to stay competitive in the evolving automotive landscape.
