Deloitte comments on new SMMT car reg figures for October 2024

Jamie Hamilton, automotive partner and head of electric vehicles at Deloitte said:

“Sales were subdued in October as new car registrations fell by -6.0% which can likely be attributed to the current financial strains faced by consumers. However, it is encouraging to see market share of battery electric vehicles increasing, but more needs to be done to meet the zero-emission vehicle target of 22% for 2024.

“The government’s decision in last week’s Budget to maintain incentives, such as the Benefit-in-Kind tax rate to boost electric vehicle purchases, provides some relief for the industry. However, some businesses will be hoping for further support to help accelerate sales. 

“Based on our calculations, from April 2025 when the new rate of national insurance comes in, a company with a fleet of 100 electric vehicles will expect to see savings of £564,000, compared to a company with a fleet of 100 internal combustion engine vehicles. 

“As the commitment to phase out cars that rely solely on petrol and diesel engines by 2030 was confirmed in the Budget, measures to provide further investments in charging infrastructure, especially in those areas where access remains limited, will provide some impetus to drivers who still remain on the fence about switching to electric. 

“As we head towards Christmas, it’s worth noting that consumer finances will likely come under further strain. While drivers will be relieved that fuel duty has been frozen for another year, we are hearing from some manufacturers that the number of drivers bringing their cars in for minor repairs has dropped. People are also increasingly waiting until something goes wrong with their vehicles before spending any money on their cars – a sign that purses are being tightened.”

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