Electric vehicle sales rocket in declining new car market

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Plug-in vehicle uptake soared in September, as the fuel crisis heightened “a new wave of enthusiasm” for EVs.

While overall UK new car registrations plummeted last month – falling to their weakest September level since 1998 – sales of EVs shot up

While overall UK new car registrations plummeted last month – falling to their weakest September level since 1998 on the back of the continued semiconductor shortages – sales of EVs shot up.

New figures from the SMMT reveal that battery electric vehicles (BEVs) registrations soared 49.4% and recorded their best monthly performance ever as 32,721 joined the road – that’s only some 5,000 less than the total BEVs registered in the whole of 2019 and gave a market share of 15.2% compared to 6.7% a year ago.

Take-up of plug-in hybrids (PHEVs) also rocketed – up 11.5% to 13,884 units and growing their market share to 6.4%. Meanwhile, hybrid electric vehicles (HEVs) also increased their overall market share from 8.0% in 2020 to 11.6%, with 24,961 registered in the month – this was however down 5.1% on September 2020.

As a result of increased interest in EVs, a third (33.2%) of all new car registrations last month were either electric, plug-in hybrid or full hybrid.

Meanwhile, diesel sales (excluding mild hybrids) slumped 77.3% to 10,658 units – giving just a 5.0% market share or 10.3% with mild hybrid diesels included. Registrations of petrol cars (excluding mild hybrids) were down nearly half (46.6%) to 94,314 units while mild hybrid petrols fell 10.1%.

Overall new car registrations fell to 215,312 units, despite the introduction of the new 71 plates. That’s down 34.4% on September 2020, when pandemic restrictions were significantly curtailing economic activity and, more tellingly, a drop of 44.7% on the pre-pandemic 10-year average.

The new SMMT figures also show that September fleet registrations were particularly hard-hit, down 43.1% to 90,445 units and prompting the sector’s market share to fall to 42.0% of total new car registrations (compared to 48.5% a year ago). ‘Business’ registrations to companies with fewer than 25 vehicles fell 43.3% to 4,307 units. Private registrations also declined but by a smaller 25.3% to 120,560 units, giving a 56.0% market share.

As a result of the month’s disappointing performance, new car registrations year to date are now only 5.9% ahead of 2020 figures, and 29.4% down on the pre-pandemic decade-long average.

The industry reaction

Mike Hawes, SMMT chief executive, said it was a “desperately disappointing September” and further evidence of the ongoing impact of the Covid pandemic on the sector.

He added: “Despite these challenges, the rocketing uptake of plug-in vehicles, especially battery electric cars, demonstrates the increasing demand for these new technologies. However, to meet our collective decarbonisation ambitions, we need to ensure all drivers can make the switch – not just those with private driveways – requiring a massive investment in public recharging infrastructure. Charge point roll-out must keep pace with the acceleration in plug-in vehicle registrations.”

Meryem Brassington, electrification propositions lead at Lex Autolease, also said the rise of EV registrations was a major boost as we work towards the 2030 ICE ban deadline.

She continued: “The recent fuel shortage will only have further heightened awareness of the importance of transitioning to an electric future. As EVs continue to rise in popularity, industry must work collaboratively to ensure there isn’t a tipping point of demand outstripping supply.”

Jon Lawes, managing director, Hitachi Capital Vehicle Solutions, agreed that the fuel crisis had reinforced clear shifts in driver priorities to cleaner, greener vehicles.

“A new form of anxiety affecting drivers of ICE vehicles has emerged during the fuel crisis. With the price at the pumps also heading in the wrong direction despite fuel shortages beginning to ease, we’ve seen EV enquiries increase markedly by 33% over the past month and our corporate order bank is currently at 85% ULEV.

“These recent events will only heighten a new wave of enthusiasm for EVs and provide further impetus for many drivers to make the switch. With COP26 around the corner, it’s vitally important all facets of the motor industry respond to this momentum.”

Centrica – parent company of British Gas – also called for further action as it welcomed the continued growth of zero-emission vehicle registrations.

Lucy Simpson, head of EV enablement at Centrica Business Solutions, said: “Government and manufacturers must continue to work together to ensure that the supply of EVs continues to meet demand as the UK accelerates its electrification ahead of the 2030 ban on ICE vehicles.

“But there are challenges ahead, not least in guaranteeing drivers certainty over access to charging infrastructure. The solution needs to include a faster roll-out of EV charging points in public places, at businesses, and at leisure facilities to avoid large swathes of the population being cut off from an electric future.”

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Natalie Middleton

Natalie has worked as a fleet journalist for nearly 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. Natalie edits all the Fleet World websites and newsletters, and loves to hear about any latest industry news - or gossip.