Electric car market share declines as private sales decrease

Sales of Electric cars are facing a stalling trend in the UK market, according to recent figures released by the Society of Motor Manufacturers and Traders (SMMT). The data shows that only 15.2% of new cars registered in March were battery Electric vehicles, a decrease from 16.2% the previous year.

While there was a rise in registrations of electric cars to company fleet buyers, sales to individuals declined. On the other hand, sales of all types of cars, including petrol, diesel, and hybrids, increased in March, which is traditionally a busy month due to the introduction of new number plates. Overall car sales rose by 10.4% to 317,786 units, marking the best March performance in five years.

Despite the positive overall sales figures, the drop in market share for electric vehicles highlights the need for government intervention to support consumers. The SMMT is urging the government to provide incentives such as halving VAT on electric vehicles and reducing VAT rates on public charging points to stimulate demand for electric cars.

Mike Hawes, the SMMT’s chief executive, emphasized the importance of government support in driving the transition to electric vehicles, stating that manufacturers cannot sustain the shift to electric alone. He pointed out that while manufacturers are offering attractive deals, the high cost of electric cars remains a barrier for private buyers.

In response to the data, Robert Forrester, the chief executive of car dealership group Vertu Motors, highlighted the lack of incentives for private buyers to purchase electric cars. He also cited concerns about range anxiety and other challenges associated with electric vehicles.

The Department for Transport defended its efforts to promote electric vehicle adoption, citing past grants, investments, and ongoing tax incentives that have helped increase the number of electric cars on the road. The government is committed to facilitating the transition to electric vehicles through initiatives like the Local Electric Vehicle fund, which aims to expand charging infrastructure.

Looking ahead, car manufacturers face potential fines if they fail to meet targets for zero-emission vehicle sales under the Zero Emission Vehicle mandate. The mandate requires that at least 22% of vehicles sold in 2024 must be zero-emission, with targets set to reach 80% by 2030 and 100% by 2035. Failure to meet these quotas could result in fines of £15,000 per car for manufacturers.

The latest data underscores the challenges and opportunities in the electric car market, highlighting the need for a coordinated effort between industry stakeholders and the government to accelerate the transition to electric mobility in the UK.