UK fleet and overall new car registrations surged in April as supply chain shortages continued to recede, prompting an upgraded outlook for 2023 but with a warning on the need for increased charging and incentives for electric vehicles.

Logistics UK’s 2023 EV report examines the public charging network, power supply availability and fiscal support, as well as SMR and lessons learned from those already switching to EVs

Total new car registrations grew 11.6% in April to reach 132,990 units, marking the ninth consecutive month of growth in April, according to the new figures from the Society of Motor Manufacturers and Traders (SMMT). It’s the best April performance since 2021’s 141,583 units but still down by 17.4% on pre-pandemic 2019 volumes.

Large fleet registrations grew by a third (33.1%) to 68,537 units on the back of increased vehicle availability and pent-up demand. Registrations to smaller business fleets, with fewer than 25 vehicles, were also up, rising 13.3% to 3,111 units. Deliveries to private buyers fell by 5.5% to 61,342 units.

Performance by battery electric vehicles (BEVs) was highly positive last month; deliveries were up by more than half (59.1%) to 20,522 units, taking 15.4% of the market compared to 10.8% in April 2022 and staying as the second most popular fuel type.

Plug-in hybrid vehicles (PHEVs) also posted strong growth, up 33.3% with 8,595 registered in the month, while hybrid electric vehicles (HEVs) recorded a 7.7% increase to 15,026 units.

As a result, electrified vehicles accounted for more than one in three registrations in April while petrol-powered cars remain the top-sellers, taking 58.1% of all registrations.

April’s rise means the year-to-date market is now up 16.9% – the best start to a year since before the pandemic. As a result, the SMMT has upgraded its latest quarterly forecast for the full year to 1.83 million units, from the 1.79 million anticipated in January’s forecast. That would bring market growth of 13.5%, which would be the best percentage gain since 1983. Earlier this week, Cox Automotive also upped its forecast for 2023, following the strong start to the year.

But the SMMT has warned of a cloud over future BEV take-up and the need for further charging investment. And it’s downgraded their expected 2023 market share from 19.7% to 18.4%, as high energy costs and insufficient charging infrastructure are expected to soften demand.

The latest outlook for 2024 has also been revised downwards, predicting that 22.6% of new car registrations will be BEVs, a downward revision from the 23.3% forecast in January.

While plans are progressing for the zero-emission mandate due to come into effect next year, the sector says greater and faster investment in infrastructure, and more incentives to encourage purchase are essential to drive consumer confidence and accelerate uptake.

Mike Hawes, SMMT chief executive, commented: “The new car market is increasingly bullish, as easing supply chain pressures provide a much-needed boost. However, the broader economic conditions and charge point anxiety are beginning to cast a cloud over the market’s eagerness to adopt zero-emission mobility at the scale and pace needed. To ensure all drivers can benefit from electric vehicles, we need everyone – government, local authorities, energy companies and charging providers – to accelerate their investment in the transition and bolster consumer confidence in making the switch.”

Data shows improvements to UK’s EV charging infrastructure ‘necessary’

Many in the automotive and fleet sectors have concurred with the SMMT’s call for further support for EVs, including ambitious targets in the planned ZEV mandate.

Nick Williams, transport managing director at Lloyds Banking Group, said: “We’ve already seen more EVs registered so far this year than in the same period last year, as the UK continues to demonstrate that the future of motoring is electric.

“However, all eyes will be on Government at the end of this month when the consultation on the Zero Emissions Vehicles mandate closes. We hope to see robust legislation finalised which will ensure a steady supply of electric models in the UK, to meet the growing demand from drivers looking to make the switch. It’s only through continued commitment to an electric future, driven by world-leading legislation, as well as investment in the charging infrastructure, that the transport sector will remain on track to achieve its net zero targets.”

Meanwhile, Deloitte said improvements to the UK’s charging infrastructure were necessary for the growth of EVs to continue at a pace that will meet the mandated ZEV targets.

Jamie Hamilton, automotive partner and head of electric vehicles at Deloitte, commented: “The attractiveness of an EV to those with off-street parking compared to those without remains a major barrier to adoption. Government figures show that around 40% of Britain’s 33 million cars are parked on the street, meaning that continued investment in affordable, accessible public charging points is needed to serve millions of potential EV drivers.

“The targets recently set out by the Government as part of the ZEV mandate consultation will make it easier to plan for the number of public charging points required and is likely to result in substantial investment in charging infrastructure.”

And Jon Lawes, managing director for Novuna Vehicle Solutions, warned that the Government’s 2030 charge point target was looking increasingly out of reach, despite recent positive news on the ZEV mandate and the Local EV Infrastructure (LEVI) funding announcement.

“Swift action and sustained investment are urgently required to deliver adequate public charging which remains insufficient and threatens to undermine momentum towards wider EV uptake in the months ahead,” he continued.

“Our EVE report revealed that 30,000 new charging points would need to be built every single year for the next seven years, a tenfold increase in the number put in the ground over the past decade.”

Finally, British engineering firm Fundamentals, which works to improve the health and performance of the grid, has said a clearer roadmap for the underlying infrastructure is needed to make EV ambitions a reality.

John Langley-Davis, head of technology, elaborated: “As initiatives drive more EVs onto roads, a clearer roadmap is needed to ensure the UK can cope.

“Affordable charging infrastructure needs to be widespread. And as EVs introduce new patterns of energy generation and consumption, there needs to be a focus on creating a flexible and dynamic energy grid that can reliably balance capacity with demand at an affordable cost. The trick is to be able to predict and cope with sudden and massive increases in local charging demand. And at the same time manage fluctuations in power available from low-carbon generation sources, including solar and wind. Initiatives like this are crucial to sustaining momentum and making the transition to zero emissions engines a success in the long-run.”