Fleet sales soar as demand for electric cars edges upwards

Demand from fleets for new cars increased by a quarter (25.2%) in February this year compared to the same period in 2023.

However, the latest data from the Society of Motor Manufacturers and Traders (SMMT) shows that registrations for private buyers dipped by nearly 3% compared to February 2023, meaning that the overall growth in sales was entirely down to fleets and businesses.

Despite the stuttering consumer new car market, the UK recorded its best February performance in 20 years, registering 84,886 units in one month alone and underscoring the increased importance of fleets to the UK car market.

Sales of electric cars also grew in what will be encouraging signs for the industry as manufacturers look to meet the government's mandated target which requires them to have a 22 per cent EV share from 2024. They still have some way to go though, with EVs securing a 17.7% market share last month.

The target of 22% is highly reliant on fleets, with private car buyers accounting for less than one in five of new BEVs registered in 2024 to date.

Ahead of the budget announcement, speculation around support for EV sales, especially for private buyers, did not materialise into new policies as the Chancellor chose not to stimulate EV demand by halving VAT on new electric vehicles.

With the increase in electric vehicle sales, Motor Assist from AX is well-placed to support fleets and dealers as the UK transitions to electric vehicles. The need for tailored incident support services, which can manage any EV incidents and offer like-for-like replacement vehicles, is greater than ever.