Electric vehicle demand drives bumper month for car registrations
UK new car registrations rose by more than a quarter (26.4%) in October, supported by strong fleet demand and soaring interest in electric vehicles.
The new SMMT stats show total registrations rose to 134,344 units from 106,265 units a year ago – although the latter had been a particularly low month, with deliveries down by 24.6%.
Growth in October was driven primarily by registrations to fleets, which grew 47.4% to 67,911 units. Private registrations rose 7.4% to 62,714 while ‘Business’ registrations to companies with fewer than 25 vehicles saw a 108.6% increase – but remain a small segment of the market with 3,719 units.
Hybrid and battery electric vehicle uptake was the driving force behind the uplift. Battery electric vehicle (BEV) registrations increased by 23.4% to 19,933 and plug-in hybrids (PHEVs) by 6.2% to 8,899.
But it was hybrids that were the hero of the day, rocketing 81.7% to account for more than one in 10 new cars, as supply was prioritised for a raft of popular new models.
Overall, electrified vehicles accounted for one in three registrations, while more than a fifth (21.5%) were BEV or PHEV.
However, the SMMT noted that BEV uptake grew by less than the overall market (23.4% vs 26.4%) for the first time since the pandemic.
Despite the bumper month, the year-to-date market is still down 5.6% on the same period in 2021 and a significant third below pre-Covid levels. The outlook for 2022 has now been revised 2.2% downwardsto an expected 1.566 million registration – putting the auto sector on course for its weakest year since 1982. On the positive side, demand for electric vehicles is anticipated to result in a plug-in market share of 21.9% this year while overall recovery is expected to continue in 2023, with an outlook of 1.808 million units and plug-ins expected to account for 26.7% of registrations next year.
Mike Hawes, SMMT chief executive, welcomed October’s growth but said it was still not enough to offset the damage done by the pandemic and subsequent supply shortages – and called for further charge point investment in the forthcoming Autumn Statement to help bolster confidence in electric vehicles.
“Next year’s outlook shows recovery is possible and EV growth looks set to continue but, to achieve our shared net zero goals, that growth must accelerate and consumers given every reason to invest. This means giving them the economic stability and confidence to make the switch, safe in the knowledge they will be able to charge – and charge affordably – when needed. The models are there, with more still to come; so must the public charge points.”
The SMMT also said the Government’s Autumn Statement, set for 17 November, should provide further measures to mitigate energy costs in the longer term for consumers and businesses.
A spokesperson added: “Now is not the time to raise motorists’ costs, which would likely stoke inflation and damage broader government revenues from new car sales. A long-term fiscal commitment to zero-emission motoring would do much to stimulate investment and demand. EV drivers’ top complaints are, invariably, cost and charging anxiety so reducing VAT on public charging to bring it into line with home charging would level the playing field for drivers unable to install a home charge point.”
Time to grasp the climate crisis
Jon Lawes, managing director, Novuna Vehicle Solutions, concurred with the SMMT’s comments on the need to address climate change through EV incentives such as robust charging infrastructure – and continued insight on Benefit-in-Kind company car tax rates.
He commented: “Despite a myriad of challenges affecting the automotive sector, uptake of electric vehicles continued to accelerate throughout October. However, with a cost-of-living crisis intensifying and a recession now all but imminent, the industry faces tough months ahead.
“Yet, as COP 27 will remind us of next week, the economic challenges we face tomorrow will be many times worse than those we face today if we don’t face up to climate reality. For all of the immediate priorities the Chancellor has to grapple with in the upcoming Autumn Statement, it’s imperative the Government remains steadfast in its conviction to support the transition to zero-emission mobility by accelerating the rollout of EV charging infrastructure and finally providing much-needed clarity for corporate fleets on BiK rates beyond 2025.”
“Widespread adoption of EVs is dependent on the supporting charging network being easily accessible and able to withstand the increased demand. Tackling charging challenges – both at home and in public spaces – is critical if the UK is to stay ahead of the electrification curve and ensure that nobody is excluded from EV ownership.”
And car leasing comparison website LeaseLoco said the charging infrastructure rollout was woefully behind where it needed to be on the path to net zero.
CEO John Wilmot explained: “The latest local authority data on public EV charger infrastructure shows that 61% of local authorities (LAs) – 228 of 375 – are failing to roll out public electric car chargers fast enough to meet the Government’s 300,000 target.
“More than a quarter (26%) of LAs expanded their public charger network by less than 10% over the past 12 months, according to our research.
“The Government has a colossal task on its hands if it hopes to hit the target by 2030 and create a charging infrastructure able to cope with the growth in EV ownership over the next decade.”
He added that while home charging will have a pivotal role to play, there will still be a huge reliance on the public charging network.
“The public isn’t stupid. They won’t be convinced to early switch to electric if they don’t believe the charging infrastructure can cope with demand. And the Government will have scored a huge own goal by declaring such an ambitious target and then coming up woefully short of it.”
Finally, EY’s Manu Varghese, from the UK & Ireland Advanced Manufacturing & Mobility Team, said: “In addition to ensuring energy security and affordability, the industry also needs to make this clean and green to fulfil its responsibility of supporting the UK’s zero emission targets. With just over seven years before the sales ban for new petrol and diesel cars, the country needs incentives, governmental support and a robust charging network to increase uptake of EVs.”