The UK new car market continues to battle the semiconductor shortage but with a ray of light from plug-in vehicle demand.

Ahead of the Spring Statement, the UK car industry has called for action on infrastructure and energy costs as plug-ins take a 25.6% market share

Registrations in February followed a similar pattern to January, with total sales of 58,994 units showing an improvement over 2021 of 15%, but a major drop of almost 26% from pre-pandemic February 2020.

The year-on-year rise of 7,682 units compares to a month when the pandemic shut car showrooms across the UK. And the SMMT has warned that vehicle supply remains constrained by semiconductor shortages.

Private registrations rose 30.0% compared to February 2021 while fleet registrations remained stable, up just 2.0% to 28,891 units, as manufacturers prioritised private customers. ‘Business’ purchases, categorised as fleets with fewer than 25 vehicles, grew by 110.7%, but this equates to a rise of just 693 units and a total of 1,319 units.

More positive news came from battery electric vehicles (BEVs), which took a 17.7% market share to reach 10,417 units, while registrations of plug-in hybrids (PHEVs) rose to 4,677 units and a 7.9% share of the market.

And when combined with hybrid (HEV) registrations (6,883), it means that electrified vehicles accounted for more than a third (37.3%) of all new cars leaving dealerships.

But the car industry has warned that action must be taken on charging infrastructure and energy costs to ensure EV demand going forwards. Cautioning that investment in charging is not keeping pace with plug-in vehicle uptake, the sector published its seven-point plan last month to increase the number of public on-street chargers ahead of need.

In particular it’s calling for “VAT fairness” on charging – a point also raised by the FairCharge campaign – to cut VAT on electricity used for public charging points to match that for home use, so that EV drivers are treated equally regardless of where they charge their vehicle.

And with the Electric Vehicle Homecharge Scheme (EVHS) to effectively end in April, the SMMT has issued a call ahead of the Government’s Spring Statement for an extension to both the EVHS and its business counterpart, the Workplace Charging Scheme, beyond 2025. It says this is vital to ensure EV uptake remains on track to meet Government’s net zero deadlines.

Mike Hawes, SMMT chief executive, commented: “Despite February’s traditional low registration numbers, consumers are switching to EVs in ever-increasing numbers. More than ever, infrastructure investment needs to accelerate to match this growth. Government must use its upcoming Spring Statement to enable this transition, continuing support for home and workplace charging, boosting public charge point rollout to tackle charging anxiety and, given the massive increase in energy prices, reducing VAT on public charging points. This will energise both consumer and business confidence and accelerate our switch to zero-emission mobility.”

It’s a call echoed by Meryem Brassington, electrification propositions lead at Lex Autolease.

Highlighting that the outlook for EVs is exceptionally bright, Brassington said: “Despite the ongoing turbulence across the industry continuing to impact the supply of new vehicles, tentative green shoots of recovery are starting to appear within the supply chain and it’s possible that we will see some of the pent-up demand released in the months ahead.

“Yet, if we don’t see continued investment in the roll-out of publicly available charge points then ultimately the UK won’t be able to meet the demand for an electrified future. All eyes will be on the Chancellor this month for clarity and additional incentives for both fleets and private drivers to accelerate the electric revolution.”