EV demand increasing

Demand for new low and zero-emissions cars has grown in the UK and they accounted for more than 40 per cent of all sales last month, according to figures from the Society of Motor Manufacturers and Traders (SMMT).

Registrations of hybrids and plug-in hybrids (PHEVs) recorded volume growth in January and their market shares rose to 13.2 per cent and nine percent respectively. 

Meanwhile, battery electric vehicle (BEV) sales continued to climb, with volumes up by 41.6 per cent year-on-year to take out 21.3 per cent of last month’s market.

Petrol car registrations dropped by 15.3 per cent over the same period to account for 50.3 per cent of all activity and new diesel cars were down by 7.7 per cent to claim a 6.2 per cent share. 

The shifts came as the overall UK new car market fell by 2.5 per cent from a year ago to 139,345 units in January, with SMMT saying weak consumer confidence and tough economic conditions combined to deliver the fourth consecutive month of decline.

Despite the increase in BEV sales, their market share remains short of the 22 per cent of the target set by the government for last year and even further behind the 28 per cent requirement for 2025. 

Mike Hawes, SMMT chief executive, says: “January’s figures show EV demand is growing – but not fast enough to deliver on current ambitions. 

“Affordability remains a major barrier to uptake, hence the need for compelling measures to boost demand, and not just from manufacturers.” 

The SMMT wants EVs to either be made exempt from the Expensive Car Supplement, which has remained unchanged at £40,000 (about NZ$87,600) since it was set eight years ago, or for the eligibility threshold to be raised for low and zero-emitters.

It says this would send a message from the government that EVs are essentials, not luxuries, and “ensure vehicle taxation remains fair and appropriate for today’s market conditions”.