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Multi-billion pound growth forecast for motor industry in 2023

1 min read

New car sales have been rising over the last five months – and battery electric vehicles have secured their best-ever monthly market share. 

The good news for the automotive industry comes on the back of a difficult first half of 2022 when new car registrations fell to their lowest level for three decades. 

A continuing recovery will see the automotive sector delivering growth worth £8.4 billion during 2023, forecasts the Society of Motor Manufacturers and Traders. 

Figures released by the SMMT show that demand for electric vehicles continues to surge after they accounted for almost a fifth of new car sales last year. 

Despite problems with supply chain shortages the UK clawed back its position as Europe’s second biggest automotive market. 

Sales of new light commercial vehicles fell during 2022 by 20.6 per cent – but demand for battery electric vans grew, with deliveries up by 31.2 per cent. 

Mike Hawes, SMMT Chief Executive, said: “The automotive market remains adrift of its pre-pandemic performance but could well buck wider economic trends by delivering significant economic growth in 2023. 

“To secure that growth – which is increasingly zero emission growth – government must help all drivers go electric and compel others to invest more rapidly in nationwide charging infrastructure.” 

Ron Quenby

Senior journalist with more than 25 years’ experience of working as a news reporter for provincial and national newspapers. Ron’s varied skills include feature writing, interviewing for real life stories and compiling specialist articles for in-house publications.

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