New car sales rose 28% in June compared to last year, although the market remains below 2019’s levels.

New car sales increased by 28.0% according to the latest SMMT’s new passenger car registration figures, compared to the same month last year when most dealerships had reopened after the first lockdown and the market benefited from significant pent-up demand. The increase in new car sales in June “builds on the continued strong momentum in auto retailing”, said Sue Robinson, NFDA Chief Executive.

In total, 909,973 new cars have been registered in 2021. Battery electric vehicles rose 122.9% and plug-in hybrids grew by 145.7%, in June. Registrations of petrol and diesel vehicles declined by -1.7% and -34.7% respectively. Demand from private customers was up 21.8% from 2020’s levels.

Retailers are seeing robust consumer demand and continued outperformance of the UK retail new and used car market. Franchised dealers are optimistic for trading over the summer albeit there will likely be a tightness in supply of new cars ahead as the shortage of semiconductors is hitting car production. We expect the industry to continue to perform well, with consumer confidence remaining high and retailers providing a first-class service to their customers.