New car market up by more than a quarter in June
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The new car market has recorded its 11th consecutive month of year-on-year growth, figures show.
Some 177,266 new cars were registered in June, up 25.8% from the same month last year, the Society of Motor Manufacturers and Traders (SMMT) said.
The increase has been attributed to an easing of global supply chain shortages.
Pure electric new cars consolidated their position as the UK’s second most popular powertrain behind petrol.
A further 31,700 went on the road last month, up 39.4% on June 2022 to secure a 17.9% market share.
SMMT chief executive Mike Hawes said: “The new car market is growing back and growing green, as the attractions of electric cars become apparent to more drivers.
“But meeting our climate goals means we have to move even faster.
“Most electric vehicle owners enjoy the convenience and cost saving of charging at home but those that do not have a driveway or designated parking space must pay four times as much in tax for the same amount of energy.
“This is unfair and risks delaying greater uptake, so cutting VAT on public EV charging will help make owning an EV fairer and attractive to even more people.”
VAT on domestic electricity is 5% whereas motorists using on-street chargers pay 20%.
The sale of new petrol and diesel cars will be banned in the UK from 2030.
Ian Plummer, commercial director at online vehicle marketplace Auto Trader, said: “Our figures show the electric share of the new car market enjoyed a much-needed boost in June – taking 15% of new car advert views up from 11% in March – due to advertising by brands promoting electric models.
“After several months of low EV interest, this is welcome news and shows that the increasing array of deals from the likes of Tesla that have hit the market in recent weeks are already stimulating demand.”
