New statistics from the Society of Motor Manufacturers and Traders (SMMT) have revealed that electric vehicles (EVs) have maintained a strong position in the UK automotive market.
Around 21,309 electrified cars – including battery electric, plug-in hybrid and hybrid models – were produced in September 2024, making up 30.4% of all cars produced. This figure does represent an overall volume decline of 37% against September 2023; however, the SMMT notes that this is broadly in line with the wider automotive manufacturing market, which saw a 20.6% decline from September 2023, a month noted for extremely strong manufacturing volumes.
The SMMT states that the reason for this year-on-year (YoY) decline in both EVs and internal combustion engines (ICE) is that many factories are winding down production of current models to prepare to produce all new zero emissions vehicles set to hit the market in the coming months. Growth in manufacturing volume is expected to return once these new models begin production.
In order to support and boost the growth of the UK automotive sector, the SMMT is calling on the government to incentivise demand for EVs in the upcoming Autumn Budget, set to take place on 30 October.
Mike Hawes, SMMT chief executive, said: “As UK automotive undergoes its most radical transformation in more than a century, short term production declines were always anticipated, and they represent a temporary adjustment in exchange for long term growth. The sector is ready to build on its position as the UK’s largest exporter of manufactured products. To do so, we need the necessary industrial and market conditions, and the forthcoming Budget and Industrial Strategy must put in place ambitious measures to bolster business confidence, attract investment and secure competitiveness.”
EV demand steadily growing
Demand for EVs has been continually increasing, with statistics from the SMMT released earlier this month revealing that September demand for battery electric vehicles (BEVs) hit new record volumes. September of this year saw sales of BEVs reaching 56,387, a rise of 24.4%, and made up 20.5% of the overall vehicle market.
The secondhand EV market is booming too, growing by 52.6% in Q2 of 2024 and hitting a record market share of 2.4% of used car sales. This continues the trend from the first quarter of this year, when used BEV sales rose by 71%.
Meanwhile, registrations of zero emission buses and trucks are also on the rise, with registrations of zero emissions buses growing by a third in Q2 2024. Government funding is critical to this growth, with almost a quarter of all new electric buses in the UK (23.2%) supported by government funding in Q1 2024.
