Electric Vehicle Demand Surpasses New Car Market, Private Buyers a Concern.

Registrations of new electric cars experienced a significant surge in July, with electrified vehicles accounting for an impressive four in 10 registrations. Despite this positive development, concerns for private buyer demand continue to loom large in the industry.
Electrified vehicles accounted for four in 10 registrations in July
The latest statistics released by the Society of Motor Manufacturers and Traders (SMMT) revealed that the overall new car market saw a rise of 2.5% last month, with 147,517 new cars hitting the roads. This growth marked the 24th consecutive month of expansion in the market, largely driven by a surge in fleet demand that helped offset the ongoing decline in private buyer interest.
July also witnessed a notable increase in demand for electrified vehicles, with hybrid electric vehicles (HEVs) seeing a 31.4% uptick to capture a 14.5% market share. Plug-in hybrids (PHEVs) also experienced growth of 12.4%, securing 8.9% of registrations.
Meanwhile, registrations of battery electric vehicles (BEVs) surged by 18.8%, outpacing the overall market growth. This increase propelled the BEV market share to 18.5%, up from 16.0% in the previous year but still below the 22% target required for carmakers to meet their Zero Emission Vehicle (ZEV) mandate goals for the year.
While the proportion of private buyers in the BEV market decreased to 17.2% from 20.3% the previous year, the actual volume of private BEV registrations saw a slight 0.9% rise. Overall, BEVs accounted for 16.8% of the new car market year-to-date.
However, with the ZEV mandate stipulating that at least 22% of each brand’s new car registrations should be zero-emission vehicles over the entire year, the SMMT has cautioned that the pace of transition needs to accelerate significantly to meet these targets.
Despite the encouraging uptake of EVs, the SMMT’s latest industry projections indicate that achieving the required surge in EV adoption appears increasingly unlikely due to current market conditions. While the outlook still predicts overall market growth by 2024, the expectations have been revised downward since April, now forecasting 1.968 million new car registrations by the year’s end.
The anticipated BEV market share has also been adjusted downwards to 18.5% from the 19.8% projected in April, reflecting concerns about weakening private retail demand for electric vehicles despite considerable manufacturer discounts being offered.
In response to these figures, many stakeholders in the fleet and automotive sector are advocating for EV incentives for private buyers and seeking clarity on the 2030 ban on Internal Combustion Engine (ICE) vehicles following the recent election results.
The continued fallback in private demand shows the urgent need to restimulate the private electric market
Sue Robinson, the Chief Executive of the National Franchised Dealers Association (NFDA), highlighted the pressing need to reinvigorate the private electric market amidst the persistent decline in private demand. The NFDA emphasised the importance of achieving the 22% ZEV mandate target to the new government, especially concerning the reinstatement of the 2030 phase-out date for ICE vehicles.
Richard Peberdy, UK Head of Automotive for KPMG, underscored the crucial role that incentives like Benefit-in-Kind and salary sacrifice schemes have played in driving EV sales growth in the business sector. Peberdy stressed that encouraging private EV sales may necessitate similar incentivisation, particularly to align with the potential reinstatement of the 2030 deadline for new petrol and diesel vehicle sales.
Kim Royds, Mobility Director at Centrica, echoed the sentiment by highlighting the need to address barriers hindering EV adoption, particularly among private buyers, and advocating for solutions to ensure equal access to charging infrastructure for all consumers.
Jon Lawes, Managing Director at Novuna Vehicle Solutions, expressed concerns over the speculation surrounding the 2030 ICE phase-out deadline, calling for decisive action to maintain momentum towards widespread EV adoption and support OEMs in meeting ZEV mandate requirements.
In the midst of these industry challenges, Peugeot has stood out with its impressive performance in the electric vehicle market, reporting a boost in its market share of electric cars and vans. The brand’s market share for electric vehicles has risen to 4.14% year-to-date, with a notable increase to 5.47% in July alone.
Peugeot’s EV growth has been boosted by the recent arrival of the E-3008
Peugeot’s success in the EV market can be partially attributed to the launch of the E-3008, which emerged as one of the top 10 best-selling electric cars in July following its full month of customer deliveries. The brand sold 8,483 electric vehicles in the first seven months of the year, reflecting a significant increase compared to the same period last year.
Looking ahead, Peugeot is set to expand its electric vehicle line-up to offer a total of 12 all-electric models, including nine passenger cars and three electric light commercial vehicles by the year’s end. Eurig Druce, Managing Director at Peugeot UK, commended the brand’s commitment to EV innovation and leadership, highlighting the success of the E-3008 and the significant market share growth in electric vehicles.
These developments underscore the growing importance of accelerating the transition to electric vehicles and addressing the challenges facing the private buyer market to achieve the ambitious zero-emission targets set by the industry, ensuring a sustainable and environmentally friendly future for the automotive sector.