Sharecast - Overall registrations for 2022 declined by 2% to 1.61 million - the lowest level since 1992 - which is around 700,000 units below pre-pandemic levels. Nevertheless, the UK reclaimed its position as Europe’s second-largest market, the SMMT said.
The data also showed that battery electric vehicles had a market share of 16.6% of registrations in 2022, surpassing diesel for the first time to become the second-most popular powertrain after petrol.
SMMT chief executive Mike Hawes said: "The automotive market remains adrift of its pre-pandemic performance but could well buck wider economic trends by delivering significant 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.
"Manufacturers’ innovation and commitment have helped EVs become the second most popular car type. However, for a nation aiming for electric mobility leadership, that must be matched with policies and investment that remove consumer uncertainty over switching, not least over where drivers can charge their vehicles."