UK New Car Registrations (SMMT): October 2020: BEV And PHEV Combined Market Share At 12.1%!

UK new car registrations SMMT October 2020

2020 Continues To Remain An Unprecedented And Challenging Trading Year For The UK Automotive Sector. The Commencement Of The Second Lockdown As A Result Of The Pandemic, Will Further Exacerbate The Already Impossible Predicament!

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Before moving onto the latest results i.e. the October 2020 new car registrations update, let us briefly remind ourselves of the September 2020 registrations update. 

smmt new car registrations september 2020
New Car Registrations: September 2020 (credit: SMMT)

September 2020 witnessed a continued increase in the registration of battery-electric vehicles (BEVs), despite a continued slowdown in the sales of petrol and diesel internal combustion engine (ICE) cars.  Petrol new car registrations were down by 20.9% in September 2020, compared to September 2019.  Diesel performed worse, with a 38.4% decline. Diesel market share decreased from 22.2% in September 2019 to 14.3% in September 2020. Petrol market share declined from 65.0% to 53.8% in the same period.  

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BEV market share increased from 2.2% in September 2019 to 6.7% in September 2020. PHEVs (plug-in hybrid electric vehicles) also witnessed a similar increase from 1.5% in September 2019 to 3.8% in September 2020.

UK new car registrations SMMT October 2020
New Car Registrations: October 2020 (credit: SMMT)

The October 2020 new car registrations update from The Society of Motor traders and Manufacturers (SMMT), is a continuation of the trend so far witnessed in 2020 i.e. diesel cars further declining in market share between October 2019 to October 2020 from 23.7% to 14.9%.  

The same is the trend with petrol cars, witnessing a decline from 61.9% to 49.5% between October 2019 to October 2020.   In terms of registrations, diesel registrations have declined by 38.4% in October 2020 compared to October 2019, with petrol registrations decreasing 21.3% in October 2020. 

Overall the market was down 1.6% with 140,945 new car registrations. With the second lock-down and the ongoing pandemic, the UK automotive sector will continue to face significant challenges in the near and medium term.

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BEV market share increased from 2.2% in October 2019 to 6.6% in October 2020. PHEVs also witnessed a similar increase from 2.2% in October 2019 to 5.5% in October 2020. 75,946 BEVs have been registered to date this year, an increase of 168.7% from last year.

UK new car registrations SMMT October 2020
New Car Registrations: October 2020 (credit: SMMT)

Year-to-date the overall sector continues to face a challenging trading environment, with new car registrations down 31.0%.

UK new car registrations SMMT October 2020
New Car Registrations: September 2020 (credit: SMMT)

The lack of BEVs and PHEVs on the SMMT October 2020 Best Sellers list, is a firm reminder that the despite all the progress, the adoption of electric vehicles is still requires much work!

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Ashvin Suri

Ashvin has been involved with the renewables, energy efficiency and infrastructure sectors since 2006. He is passionate about the transition to a low-carbon economy and electric transportation. Ashvin commenced his career in 1994, working with US investment banks in New York. Post his MBA from the London Business School (1996-1998), he continued to work in investment banking at Flemings (London) and JPMorgan (London). His roles included corporate finance advisory, M&A and capital raising. He has been involved across diverse industry sectors, to include engineering, aerospace, oil & gas, airports and automotive across Asia and Europe. In 2010, he co-founded a solar development platform, for large scale ground and roof solar projects to include the UK, Italy, Germany and France. He has also advised on various renewable energy (wind and solar) utility scale projects working with global institutional investors and independent power producers (IPP’s) in the renewable energy sector. He has also advised in key international markets like India, to include advising the TVS Group, a multi-billion dollar industrial and automotive group in India. Ashvin has also advised Indian Energy, an IPP backed by Guggenheim (a US$ 165 billion fund). He has also advised AMIH, a US$ 2 billion, Singapore based group. Ashvin has also worked in the real estate and infrastructure sector, to including working with the Matrix Group (a US$ 4 billion property group in the UK) to launch one of the first few institutional real estate funds for the Indian real estate market. The fund was successfully launched with significant institutional support from the UK/ European markets. He has also advised on water infrastructure, to include advising a Swedish clean technology company in the water sector. He is also a member of the Forbury Investment Network advisory committee. He has also been involved with a number of early stage ventures.

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