The UK’s electric vehicle (EV) market has passed a new milestone by reaching over a million battery electric vehicles (BEV) on the roads, as researched by the Society of Motor Manufacturers and Traders (SMMT).
In January, the EV market grew by 8.2%, 142,876 new cars were registered, recording a year-on-year (YoY) uplift of 10,882 units, one of which was the millionth BEV to reach UK roads.
Specifically, 20,935 BEVs were registered in January, a rise of 21% YoY, taking the overall total since 2002 to 1,001,677.
2024 has seen the best-performing January since 2020 and it marks the 18th consecutive month of growth, increasing its market share YoY to 14.7%.
The increase was primarily driven by the fleet market, which rose by 29.9%, while private retail uptake fell -15.8%. Fleets have been dominating the UK market, accounting for more than six in 10 (63.2%) new cars registered, up from just over half (52.7%) last year.
SMMT has also identified that the UK is now the only major market to combine a 2035 end-of-sale date with a mandated zero-emission vehicle market share without any significant consumer incentives.
The organisation states that industry members are calling for UK government support in the form of halving VAT on new BEV purchases ahead of next month’s Budget.
Mike Hawes, SMMT chief executive, said: “It’s taken just over 20 years to reach our million EV milestone – but with the right policies, we can double down on that success in just another two. Market growth is currently dependent on businesses and fleets. The government must therefore use the upcoming Budget to support private EV buyers, temporarily halving VAT to cut carbon, drive economic growth and help everyone make the switch.”
The most recent 2024 outlook estimates a strong, growing EV market, with a total overall volume of 1.974 million units. However, the BEV market is forecast to reduce to a 21% market share over the year, compared with the 22.3% anticipated in October 2023.
It is anticipated that around 100,000 more BEVs will reach the road by the end of 2024, making BEVs more than one in five new cars in the UK, up from one in six in 2023.
The road to 1 million
Considering SMMT’s figures date back to 2001, this road has been a long and arduous one, but recent highlights provide hope for an electric future. Most notably, the growth of a used EV market in the UK is a significant indicator of the country’s future EV market.
In August 2023, SMMT reported that used EV sales soared in Q2 2023 by 81.8% YoY, meaning they accounted for 1.7% of the market share, up 1% YoY.
Moreover, July 2023 was named the “best month for EV registrations since 2020” by SMMT with 28% YoY growth – number 12 in the 18 consecutive months of growth.
Going forward, however, volatility in BEV supply has been expected. It is likely to continue as manufacturers adjust product allocation following the last-minute resolution over UK-EU rules of origin, which had threatened to apply tariffs to EVs, restricting affordability.
