Nearly a third of new cars now hybrid or electric

By / 3 years ago / UK News / No Comments

Hybrid and fully electric cars accounted for nearly a third (28.9%) of new car registrations in July as the bumper growth in low-emission vehicles continued.

Fully electric and plug-in hybrids are now expected to account for more than one in six new cars acquired in 2021

Latest figures from the Society of Motor Manufacturers and Traders (SMMT) show that battery electric vehicle (BEVs) registrations grew 36.5% last month and accounted for 9.0% of the total market, while plug-in hybrids (PHEVs) were up 32.2% and took an 8.0% share. Hybrids rose 15.5% and took an 11.9% share.

That’s despite new car registrations plummeting to their lowest level since 1998 with both the semiconductor shortage and the pingdemic ‘throttling’ a full recovery.

Carmakers reporting significant gains include Peugeot, which increased its electric and plug-in hybrid car sales by 112% for the year to date, selling just over 6,000 full electric and plug-in hybrid vehicles in the first seven months of 2021.

Due to the ongoing semiconductor shortage, the UK auto industry has now revised the annual outlook for new car registrations to 1.82 million units, still up some 11.7% up on 2020, but down from the 1.86 million forecast in April, and down around 21.8% on the average new car market recorded over the past decade.

But the figures also forecast that BEVs will account for 9.5% of registrations by year end, while PHEVs are forecast to comprise 6.5% of the market, collectively totalling around 290,000 units by the end of the year.

Mike Hawes, SMMT chief executive, said: “The automotive sector continues to battle against shortages of semiconductors and staff, which is throttling our ability to translate a strengthening economic outlook into a full recovery.”

He added: “The bright spot, however, remains the increasing demand for electrified vehicles as consumers respond in ever greater numbers to these new technologies, driven by increased product choice, fiscal and financial incentives and an enjoyable driving experience.”

Commenting on the figures, Jon Lawes, managing director of Hitachi Capital Vehicle Solutions, said: “The trajectory for EV uptake continues to be positive and these latest figures prove that barriers to entry are falling, whilst driver confidence is rising.

“Investment in infrastructure is crucial to accelerating the transition as quick as possible and the Government spotlight on potential zero-emission vehicle mandates, as well as the recent transport decarbonisation report, will only improve this further.

“Supply chain is an increasing challenge, so it is integral that fleets remain agile to increase volumes in a sustainable manner.”

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Natalie Middleton

Natalie has worked as a fleet journalist for over 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.