Only one in 25 new cars costs less than €20,000, while sales to private buyers fall by 13%
Drivers are turning their backs on electric vehicles and petrol and diesel cars amid the rising costs of new models.
Figures from the Society of Motor Manufacturers and Traders (SMMT) show that 57,453 were sold to private buyers in May, which was 12.9 percent less than the same month last year.
And while the market for petrol and diesel cars continues to shrink in anticipation of a ban, sales of fully electric vehicles to private buyers also fell by 2 percent.
It came after Auto Trader figures showed only one in 25 new cars cost less than £20,000, compared to one in six five years ago.
Auto Trader commercial director Ian Plummer said: ‘The new car market remains sluggish and retail demand has fallen as a lack of affordable new models means less choice, despite fleet buyers supporting the market.
Sales slump: SMMT figures show just 57,453 new cars were sold to private buyers in May – a 12.9% drop on the same month last year
‘Rising new car prices since 2019 mean even volume brands are suffering as the middle market is eroded.
‘The high prices are driving many more buyers into the second-hand market, but also making the British market vulnerable to more affordable competition, for example from Chinese electric vehicles.’
The price of new cars has risen because production of electric vehicles is more expensive. And the trend toward more expensive models such as SUVs has driven up prices, while inflation has also contributed to the increase.
A total of 147,678 new cars were sold in May – an increase of 1.7 percent on last year – according to SMMT figures.
The increase was driven by orders from fleet and business customers, which increased by 14 percent and 9.5 percent respectively.
That barely offset the 12.9 percent decline in private sales. A total of 9,220 diesel and 81,058 petrol cars were purchased in May, down 16.7 percent and 2.1 percent respectively, ahead of a ban in 2035.
Sales of fully electric battery cars rose 6.2 percent to 26,031, while a 10.7 percent increase in fleet volume offset the decline in demand among private buyers. There was also a strong increase in demand for hybrid vehicles.
Mike Hawes, CEO of SMMT, said: ‘As Britain prepares for next month’s general election, the new car market remains stable as large fleets continue to grow and offset weakened private retail demand.’
He added: ‘Consumers are enjoying a plethora of new electric models and some very attractive offers, but manufacturers cannot sustain this level of support on their own indefinitely.
“Their success to date should be a sign to the next administration that a faster and fairer transition requires carrots, not just sticks.”