U.K. eyes 1.9M new-car sales this year

New-car sales in Britain are now expected to reach 1.89 million by the end of the year, 2.1 percent higher than the previous outlook, the Society of Motor Manufacturers and Traders (SMMT), said, as monthly registrations rose over 14 percent from year ago in October.

The SMMT also raised the sales outlook for 2024 by 1 percent to 1.97 million new cars.

New-car sales rose 14 percent to 153,529 cars in October from a year ago, 7.2 percent above pre-pandemic levels, final data from SMMT showed, driven by large fleet sales, which were up almost 29 percent. This represented the 15th consecutive month of growth in the market.

Demand for  full-electric vehicles remained robust in October, accounting for 38 percent of all new car registrations.

"As fleet uptake flourishes, particularly for EVs, sustained success depends on encouraging all consumers to invest in the latest zero emission vehicles," said SMMT CEO Mike Hawes.

In the battery electric vehicle (BEV) market, however, private sales accounted for less than one in every four registrations, underscoring the need for fiscal incentives for customers.

Hawes said that this was a key opportunity for the government to introduce incentives and facilitate infrastructure investment.

"Doing so would send a clear signal of support for drivers, reassuring them that now is the time to switch to electric," he said.

Britain in late September stuck to its timetable to phase out cars that burn fossil fuels by 2035, limiting industry impact from Prime Minister Rishi Sunak's plan for a five-year delay to stop sales of new combustion-engine cars.