June sees surge in electric car sales as UK hits million new registrations.

The UK has reached a significant milestone in the automotive industry as the new car market hits half a million vehicles for the first time in five years. The latest data released by the Society of Motor Manufacturers and Traders (SMMT) reveals a surge in sales of battery electric vehicles (BEVs), which have increased by 7.4% to 34,034 units.

In June, new car registrations experienced a modest growth of 1.1%, reaching 179,263 units. As a result, the total number of new cars registered so far in 2024 stands at 1,006,763, reflecting a 6.0% increase from the previous year. However, this figure is still down by -20.7% compared to 2019.

The growth in the market in June was primarily driven by the fleet sector, where uptake rose by an impressive 14.2%. On the other hand, private retail demand declined for the ninth consecutive month, falling by -15.3%. Retail buyers now only account for less than four in 10 new cars registered, at 37.7%.

The trend towards electrified vehicles continued to grow in June, with plug-in hybrid (PHEV) volumes increasing by 30.0% and hybrid electric vehicles (HEV) rising by 27.2%. Battery electric vehicle (BEV) sales also saw a 7.4% increase, reaching their highest monthly market share this year at 19.0% of all new vehicle registrations.

As a whole, BEVs now make up 16.6% of the new car market so far this year, slightly above the 16.1% achieved in the same period last year. However, the uptake still falls short of the levels mandated by the government.

With the UK elections taking place, the automotive industry is calling on the next government to provide greater support to consumers on their journey towards zero-emission mobility. Proposed measures include reinstating fiscal incentives for private consumers, such as halving VAT on BEVs for three years, which could result in an additional 300,000 private BEVs on the road over the next three years, helping to ensure half of all cars in use by 2035 are zero emission.

Other recommendations include revising Vehicle Excise Duty plans to classify zero-emission vehicles (ZEVs) as essential rather than luxury vehicles and reducing VAT on public charge point use to further support ZEV uptake.

Mike Hawes, SMMT Chief Executive, highlights the challenges and opportunities ahead, emphasising the importance of policies to re-energise the market and accelerate the transition to zero emission vehicles. He stresses the role of electrified powertrains in reducing carbon emissions and achieving environmental goals.

Industry reaction has been positive, with Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA), underscoring the need to revitalise the private electric vehicle market to meet targets set by the Zero-Emission Vehicle Mandate. The NFDA urges the next government to address challenges facing the sector, including skills shortages and market share discrepancies between private and fleet demand.

Russell Olive, UK Director of vaylens, acknowledges the growth in new car sales driven by fleets and businesses adopting electric vehicle models. However, he highlights the need for incentives to encourage private consumers to switch to EVs and the importance of developing infrastructure to support the increasing demand for EVs on the road.

As the automotive industry continues to evolve towards greener and more sustainable practices, collaboration between the government, industry stakeholders, and consumers is crucial to achieving a faster, fairer transition to zero emissions.

Image courtesy of Shutterstock.