Figures from the Society of Motor Manufacturers and Traders (SMMT) show that September saw demand for battery electric vehicles (BEV) hit a new record volume, achieving a 20.5% share of the overall market.
Units sold rose by 24.4% to 56,387, and the record market share is a 16.6% increase on the previous year. In the new car market generally, September was a key ‘74’ plate change month that saw a market increase of 1%, its best performance since 2020.
Across all fuel types, growth was driven by fleet purchases, which represented 54.2% of the overall market. Private consumer demand fell by -1.8% to 120,272 units, accounting for 43.7% of registrations.
Plug-in hybrids saw the fastest growth of any fuel type and hybrid electric vehicle registrations rose 2.6%. Meanwhile, petrol and diesel registrations declined by 9.3% and 7.1%, respectively, although together, they were still the choice of 56.4% of buyers in September.
The record volume of BEVs sold was also primarily due to fleets, deliveries of which rose 36.8% to account for more than three quarters (75.9%) of BEV registrations. Private BEV demand also rose, up 3.6% after what the SMMT called ‘unprecedented’ manufacturer discounting.
This growth was equivalent to just 410 additional registrations. Consumer demand for diesel vehicles grew at a faster rate, increasing 17.1% in September—a volume uplift of 1,367 units.
BEV market share for the year to date only marginally rose to 17.8%, with the SMMT forecasting this will reach 18.5% by the end of the year. According to the SMMT, previous assumptions—of a market delivering steady BEV growth, cheaper and plentiful raw materials, affordable energy and low interest rates—have not come to fruition.
The upfront cost of a BEV remains high and the trade association also suggested that lack of consumer confidence in the UK’s charging provision (despite recent investment and growth) is still acting as a barrier.
This is contrary to research carried out by Octopus Electric Vehicles. The electric vehicle leasing arm of the UK utility said the charging infrastructure myth was busted after its research found four out of five EV drivers said the network is ‘good’.
Sustaining the EV industry
SMMT estimates that to offset the underlying lack of consumer demand, manufacturers are on course to spend at least £2 billion discounting EVs this year. Given the money already invested to develop and bring these models to market, the situation is “untenable” and threatens manufacturer and retailer viability.
As a result of this somewhat bleak outlook, SMMT and 12 major vehicle manufacturers wrote to the chancellor on 4 October, calling for measures to support consumers and speed up the pace of the transition ahead of the budget announcement expected in the coming weeks. These include:
- Temporarily halving VAT on new EV purchases to put more than two million new ZEVs (rather than petrol or diesel) on the road by 2028.
- Scrapping the VED ‘expensive car’ tax supplement for ZEVs, due next year, to avoid penalising buyers.
- Equalising VAT on public charging to match the 5% home charging rate and mandating infrastructure targets to support those who cannot charge at home.
- Maintaining and extending the business incentives that are working, including Benefit in Kind, which supports company cars and those on salary sacrifice schemes, and the important Plug-in Van Grant.
Mike Hawes, SMMT chief executive, said: “September’s record EV performance is good news, but look under the bonnet and there are serious concerns as the market is not growing quickly enough to meet mandated targets.
While we appreciate the pressures on the public purse, the Chancellor must use the forthcoming Budget to introduce bold measures on consumer support and infrastructure to get the transition back on track and, with it, the economic growth and environmental benefits we all crave.”