Record September Registrations for BEVs

The UK new car market saw a boost in September, the key plate change month, with battery-electric vehicles (BEVs) surging almost a quarter year-on-year, as per the latest data from the Society of Motor Manufacturers and Traders (SMMT).

The market as a whole delivered its best performance since 2020, reaching 275,239 units. September witnessed a record volume for the latest BEVs, up by a striking 24.4% to 56,387 units, capturing a significant 20.5% share of the total market, a notable rise from 16.6% a year prior. The industry now anticipates that it will encompass around 18.5% of the entire market by the year-end.

The spike in registrations was predominantly fuelled by fleet purchases, which surged by 3.7% to 149,095 units, now making up 54.2% of the overall market. In terms of BEVs, fleet deliveries skyrocketed by 36.8%, comprising a substantial 75.9% of the total registrations for this vehicle type.

In contrast, private consumer demand witnessed a slight dip, down by 1.8% to 120,272 units, making up 43.7% of the registrations, while the smaller business segment observed a more drastic decline of over 8% to 5,872 units.

Plug-in hybrids (PHEV) registered the fastest growth among all fuel types in September, surging by 32.1% to command an 8.9% share of the market. Hybrid electric vehicle (HEV) registrations also climbed by 2.6%, raising the market share to 14.2%.

Furthermore, there was a notable continued decrease in Internal Combustion Engine (ICE) vehicles, showing a near double-digit decline of 9.3% for petrol and 7.1% for diesel. Currently, these fuel types comprise only 56.4% of the overall market, a substantial drop from 85-90% just five years ago.

Although new private BEV demand decreased in terms of new registrations compared to the previous year, the used EV segment is maturing and expanding, as indicated by a growth of over 50% according to data from the SMMT.

In a bid to accelerate the transition to Electric Vehicles (EVs) even further, the SMMT, along with 12 Original Equipment Manufacturers (OEMs), penned a letter to the Chancellor of the Exchequer prior to the autumn Budget. Their aims include reducing Value-Added Tax (VAT) on new EVs, eliminating the Vehicle Excise Duty (VED) ‘expensive car’ tax supplement for Zero Emission Vehicles (ZEVs), aligning VAT on public charging with the 5% domestic charging rate, and upholding the Benefit in Kind rules for company cars along with the Plug-in Van Grant.

Mike Hawes, Chief Executive of SMMT, expressed that the surge in EV registrations is positive news but emphasized that more support is required to uplift this sector.

Hawes commented:

“While we acknowledge the financial constraints, the Chancellor must introduce substantial measures in the upcoming Budget to facilitate consumer support and infrastructure, thereby getting the transition back on track, thereby fostering both economic growth and environmental benefits that we all desire.”

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