UK new-car registrations jumped 26 percent in February to 74,441, the seventh consecutive month of growth in the market, according to industry data released on Monday.
The rise was helped by strong demand for full-electric vehicles, which rose 18 percent for a 16.5 percent market share. Gasoline vehicles were up 35 percent for a 43.4 percent share, while diesel dropped 15 percent for a 4.5 percent market share, data from the Society of Motor Manufacturers and Traders (SMMT) showed.
The UK’s upcoming spring budget on March 15 should include setting out a long-term plan for investment in charging infrastructure to meet demand from EVs and plug-in hybrid cars, the SMMT said.
The industry body also called for a review of the Vehicle Excise Duty premium that it said would unfairly penalize buyers switching to the more expensive EVs.
"As we move into ‘new plate month' in March, with more of the latest high-tech cars available, the upcoming budget must deliver measures that drive this transition, increasing affordability and ease of charging for all,” SMMT CEO Mike Hawes said.
Sales of new cars last month were helped by easing supply-chain shortages that helped steer the market closer to pre-COVID levels.
The best-selling model in February was the Vauxhall Corsa, the SMMT said.
Kerrigan Advisors recently sat down with Donnie and Denny Buckalew, co-owners of Buckalew Chevrolet, the 5th highest-volume Chevrolet dealership in Houston, Texas, to discuss their perspective on the changing auto retail industry and how challenges facing single-point dealers influenced their decision to sell their dealership.
Through February, UK market sales rose 19 percent to 206,435.
The SMMT expects an 11 percent rise in sales this year to 1.79 million, still well below 2019 levels.
Automotive News Europe contributed to this report
