The year 2023 has brought revival, innovation and transformation to the UK motor industry. Along with remarkable growth in general, the industry has undergone seismic shifts when it comes to EV technology and uptake. As the year draws to a close, we’re taking a moment to look back at 2023 and explore the driving forces behind some of the biggest changes. We’ll also leap forward to 2024 and spotlight some of the trends set to shape the automotive landscape over the coming year.
The road to a million cars
Breaking all expectations, British vehicle manufacturers are on track to produce a million cars in 2023. This figure smashes earlier projections by the Society of Motor Manufacturers and Traders (SMMT). The optimistic outlook, a staggering 18% higher than official output figures in 2022, reflects the resilience and adaptability of the UK motor industry.
The revival comes on the heels of a tumultuous 2022, deemed the worst year for UK car production since 1956. The easing of supply chain issues and a swift transition to electric vehicles (EVs) are key catalysts behind the renaissance.
The advent of EVs
A pivotal force reshaping the motor landscape is the rapid adoption of electric vehicles. As of November 2023, the UK boasts around 1,529,000 plug-in cars, a significant leap from the previous year's numbers. Within this, battery-electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) contribute significantly, with approximately 950,000 and 570,000 units respectively. The surge in registrations represents 20% growth from 2022 and underscores the increasing acceptance of EVs among British motorists.
Plugged into progress
EV uptake is largely driven by rapidly improving and expanding charging infrastructure. As of October 2023, the Department for Transport reports a total of 49,220 public electric vehicle charging devices installed across the UK. Around 18% of these devices boast a power rating of 50kW or above, highlighting a commitment to rolling out faster charging solutions. 45% of public chargers are designated as "destination" chargers and 38% as "on-street" chargers, a strategy designed to meet the different needs of EV drivers.
A recent pledge to invest a further £70 million into rapid electric car chargers proves just how serious the British government is about supporting EV uptake.
Driving forces behind the surge
Several factors contribute to the surge in EV adoption. The looming ban on the sale of new combustion-engine cars by 2030 plays a pivotal role, promoting both manufacturers and consumers to embrace sustainable alternatives. Advances in battery technology have also helped to accelerate the transition.
Additionally, the rise of younger drivers as major owners of electric cars, as revealed in a study commissioned by UK insurance giant Direct Line Group, indicates a generational shift towards sustainability.
An uptake in international investment
Recent developments from auto giants like Nissan and India's Tata Group highlight an uptake in international investment. Nissan plans to channel more than £1 billion into its British manufacturing plant, an investment that will allow the facility to roll out electric versions of the Qashqai and Juke. Tata Group's announcement of a £4 billion investment to build its first gigafactory outside India further positions the UK as a hub for electric vehicle manufacturing.
2023 bestsellers in the spotlight
We’ve talked about the remarkable recovery the UK motor industry enjoyed in 2023. Now, let’s dive a little deeper and spotlight exactly which models won over motorists. Using new car registration data from the Society of Motor Manufacturers & Traders (SMMT), here’s a look at the top 10 bestselling models of 2023.
- Ford Puma: 46,434 registrations
- Nissan Qashqai: 39,068 registrations
- Vauxhall Corsa: 37,826 registrations
- Kia Sportage: 34,620 registrations
- Hyundai Tucson: 32,301 registrations
- Tesla Model Y: 31,083 registrations
- Mini Hatch: 29,777 registrations
- Nissan Juke: 29,272 registrations
- Vauxhall Mokka: 28,390 registrations
- Audi A3: 28,178 registrations
Unsurprisingly, the roundup includes a mix of models, including both internal combustion engine (ICE) cars and electric vehicles. The Ford Puma emerged as the leader, a testament to the success of its Fiesta-based crossover SUV. The Nissan Qashqai secured the second spot, a crown that reinforces the enduring popularity of compact SUVs. In third place is the Vauxhall Corsa, proving that traditional superminis are still well-loved in the UK.
Navigating the future: what’s ahead for 2024?
As we drive into the future, it's clear that the UK's motor industry isn’t just recovering but accelerating. The combination of government support, industry investment and evolving consumer preferences will continue to bolster the UK automotive industry in 2024.
A recovery in used car prices
One of the biggest trends set to shape the motor industry over the coming year is a recovery in used car prices. They have attracted plenty of attention over recent years, with global supply chain issues significantly inflating the value of second-hand vehicles. While 2023 saw used car prices decline – a trend that was initially interpreted as a temporary correction following the price jumps seen in 2020 and 2021 – concerns of an overcorrection were restarting to arise.
The good news? Manu Varghese, a representative from the UK & Ireland Advanced Manufacturing & Mobility Team at EY says 2024 will bring stability to the used car market. “Despite the current trend, signs of recovery are expected in 2024. The market is dynamic and continues to encourage an optimistic outlook in used car pricing as we move into the next year,” says Varghese.
Drive into 2024 with confidence
Whether you’ve got your sights set on a brand new bestseller like the Ford Puma or a pre-loved model with plenty of life under the hood, Leasing Options can help you cruise into 2024 with confidence. Get in touch with a team member today to discuss how our auto finance service can help match you with top UK lenders.
