News analysis
EV transition ‘could stall’ despite sales increase
Record EV registrations last month were still not enough to meet targets, the industry has warned. Sean Keywood reports.
However, the Society of Motor Manufacturers and Traders (SMMT) has warned that the share of the overall market taken by electric vehicles had actually fallen compared with March 2023, and warned this was a sign that more support was needed for electrification.
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Fleet demand is still proving key both to EV sales and overall market growth, with a 10.4% growth in overall new car registrations in March driven by a 29.6% rise to the fleet sector.
4 | April 2024 |
www.businesscar.co.uk
he UK new car market saw year-on-year growth in March, with more EVs registered than ever before.
Private registrations were down by 7.7% year-on-year, and business registrations, classed as those to firms with fewer than 25 vehicles, down by 8%.
The total of 317,786 registrations recorded was the highest seen in March since 2019 – but still 30.6% below pre-pandemic levels.
In terms of fuel mix, a 3.8% year-on- year rise in EV registrations – something the SMMT attributed to fleet demand motivated by tax incentives – saw a total of 48,388 hit the road, but this was only enough for a 15.2% overall market share, down by 1% compared with March 2023. Plug-in hybrids saw strong growth last month, up by 36.7% year-on-year for a
7.7% market share, while conventional hybrids were up by 19.6% for a 14% market share.
Petrol registrations were up by 9.2% for a 55.7% market share, while diesel registrations were down by 2.7%, taking 7.3% of the market.
Regarding the EV transition, the SMMT said that manufacturers were offering their own ‘generous’ incentives, but that these could not be sustained indefinitely. It said a full market transition would need incentives provided for retail buyers as well as fleets, with suggestions including temporarily halving VAT on BEVs, revising the threshold for the expensive car supplement on Vehicle
Excise Duty in changes due next April, and equalising VAT on public and home EV charging.
SMMT chief executive Mike Hawes said: “Market growth continues, fuelled by fleets investing after two tough years of constrained supply. A sluggish private market and shrinking EV market share, however, show the challenge ahead. “Manufacturers are providing compelling offers, but they can’t single- handedly fund the transition indefinitely. “Government support for private consumers – not just business and fleets – would send a positive message and deliver a faster, fairer transition on time and on target.”
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