While the electric vehicle sector grabs the headlines with its record-breaking boom, the recovery of the UK’s overall car market remains a slow burn, with sales still struggling to return to pre-pandemic vitality. September’s figures highlight a market that is growing but remains fragile and heavily dependent on one booming segment.
The total market saw 312,900 new cars registered, a 14% increase on the previous year and the best September since 2020. This is positive news for an industry that has faced immense challenges. However, this growth is almost entirely due to the surge in electric and hybrid sales, which were artificially boosted by new government subsidies.
When viewed in a broader historical context, the recovery appears modest. Before the coronavirus pandemic, the industry regularly posted much higher sales figures. The current performance indicates that the market has not yet overcome the significant economic headwinds affecting the country, most notably the persistent cost of living pressures on households.
This creates a two-speed market. The electric segment is accelerating rapidly, fueled by incentives and innovation. Meanwhile, the traditional petrol and diesel market, which still represents a substantial portion of sales, is far more subdued, reflecting the caution of the average consumer when faced with a major purchase.
Therefore, beyond the hype of the EV revolution, the reality for the wider car industry is one of a gradual and challenging recuperation. The path back to pre-2020 sales volumes looks set to be a long one, contingent on a significant improvement in the broader economic outlook for UK consumers.