UK new car registrations fell 15.8% in April as supply challenges continue, but battery electric car registrations bucked the trend with a 40.9% rise.

Battery electric vehicles took a 10.8% market share in April, up from 6.5% for the same month last year

Despite showrooms being open for the entire month, unlike the previous year, overall registrations fell to 119,167 units in April, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).

The slump was largely the result of a 33.3% fall in the fleet sector, which dropped to 51,505 units as carmakers continued to prioritise higher-margin sales to private consumers, which saw this market segment post an increase of 4.8%. Meanwhile, registrations to smaller businesses – fewer than 25 vehicles – fared better, growing by 15.4%.

But battery electric car registrations posted a 40.9% rise to 12,899 units and accounted for more than one in 10 registrations with a 10.8% market share, up from 6.5% last year. Registrations of hybrids (HEVs) also rose by 18.3%, but new plug-in hybrid (PHEV) registrations decreased by a third (36.6%). Overall, electrified vehicles accounted for 27.5% of all new car registrations during April.

Year-to-date, registrations totalled 536,727 – down 5.4%. Again, the largest fall was seen in larger fleet registrations, which fell 25.0%. Private registrations were up 17.8% while smaller fleets rose 28.7%.

Further economic headwinds are also on the cards, including rising inflation, not least due to the spiralling energy and fuel costs squeezing household incomes, and continued supply chain issues and other uncertainties from the global political situation and the effects of the Russian invasion of Ukraine.

As a result, the SMMT has downgraded its market outlook for 2022, with 1.72 million new cars now expected to be registered during the year, down from the 1.89 million outlook in January. This is still up 4.5% on 2021, but highlights the effect the semiconductor shortage continues to have on supply as well as anticipated impacts from rising living costs.

The trade body also revised its outlook for plug-in vehicles, with the forecast for BEV registrations now at 289,000 units, down from 307,000; and PHEVs at 144,000, down from 163,000. The outlook for HEVs has also fallen, from 198,000 to 193,000. Plug-in electric cars are now expected to account for a quarter of all registrations (25.2%) during the year – and BEVs alone are projected to comprise around one in six new cars on the road.

The SMMT also continued its calls for action to help drivers switch to EVs – in particular to address key driver concerns over charging – and said that the forthcoming ZEV Mandate, which would require manufacturers to sell a certain proportion of BEVs every year in the run up to 2030, must also include commensurate and binding targets on charging infrastructure provision.

Mike Hawes, SMMT chief executive, said: “Accelerating the transformation of the new car market and the carbon savings demanded of road transport in such difficult times requires not just the resolution of supply issues, however, but a broader package of measures that encourages customer demand and addresses obstacles, the biggest of which remains charging anxiety.”

Fleet and auto sector reaction

Commenting on the figures, Jon Lawes, managing director, Novuna Vehicle Solutions, said the EV revolution was clearly well underway.

“It has taken just four months for the UK to register over 75,000 new fully battery powered vehicles in 2022, a milestone that in 2021 wasn’t reached until July, while in 2020 it was as late as October, a full six months later than this year. The impressive numbers illustrate how EV manufacturers are, for now at least, largely belying the vehicle shortages which are having a profound impact on the rest of the automotive industry.”

But as supply chain issues continue to impact OEMs and lead times, he urged fleets to take a more proactive stance on going electric.

“With a protracted shortage of vehicles, it is prudent for drivers and fleet operators to be planning further ahead, increasing their renewal cycle from six to nine months in advance. For leasing companies, there is an onus on providing flexible extension agreements to help alleviate the current situation.”

Meanwhile, Meryem Brassington, electrification propositions lead at Lex Autolease, agreed with the SMMT that more action was needed to further drive EV take-up.

“Policymakers have played a huge role in encouraging EV manufacturers to bring zero-emission vehicles to the UK despite the ongoing supply chain issues, delivering a real boost to our green economy. In order to ensure that the good work continues beyond 2025, balancing demand and supply is now key to achieving the UK’s longer-term ambition. The recently launched Zero Emission Vehicle Mandate policy consultation further cements the UK’s ambition to lead the EV charge and will be vital to help shape the trajectory for an electric future in the years ahead.

“In addition to this it’s essential that Government provide clarity on company car tax rates, and that any changes remain gradual and proportional until we see cost parity between traditionally and alternatively fuelled vehicles.”

Felicity Latcham, head of auto retail at OC&C Strategy Consultants, said the data provides further evidence that the supply of EVs is faring better in the face of the industry-wide semiconductor shortage. “This is in part due to manufacturers rushing to fulfil EV orders, which are typically more lucrative and help meet emissions targets, but also how several EV carmakers, including Tesla, have reaped the rewards of continuing to place chip orders throughout the pandemic, when many other carmakers adopted a more cautious approach.”

And Jamie Hamilton, automotive director and head of electric vehicles at Deloitte, added that the EV stats were also down in part to a shift in consumer behaviour, with many dealers reporting greater BEV enquiries as the cost of fuel has skyrocketed.

“With prices unlikely to fall any time soon, we could see faster-than-expected take up of electric vehicles this year,” he added.

The forthcoming EV mandates are likely to drive this further. Hamilton continued: “This is another major step forwards on the path to an all-electric future and should speed up EV targets. As we get increasing clarity on emissions targets for OEMs, we could see them prioritise the sale of BEVs over other vehicle types.”