The UK new car market continued its downward trend in October, falling by 6% compared to the same period last year. However, a bright spot emerged in the form of battery electric vehicles (BEVs), which saw a 24.5% increase in registrations.
A Divided Market
While BEVs are gaining momentum, the overall market is struggling. Petrol and diesel vehicles experienced double-digit declines, and even hybrid electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs) saw their sales dip.
The Society of Motor Manufacturers and Traders (SMMT) attributed the overall decline to various factors, including economic uncertainty, rising interest rates, and the cost-of-living crisis. These factors have impacted both private and business buyers.
The Rise of Electric Vehicles
Despite the challenging market conditions, BEVs continue to gain popularity. A growing range of models, coupled with significant manufacturer discounts, has made EVs more affordable and accessible to a wider range of consumers. In fact, one in five BEV models is now priced lower than the average petrol or diesel car.
However, the SMMT warns that sustained growth in EV sales will require continued government support. While the recent Budget extended incentives for businesses and fleets, more needs to be done to encourage private buyers to switch to electric vehicles.
Government Intervention Needed
Mike Hawes, SMMT Chief Executive, emphasized the need for bold government intervention: “Massive manufacturer investment in model choice and market support is helping make the UK the second-largest EV market in Europe. That transition, however, must not perversely slow down the reduction of carbon emissions from road transport. Fleet renewal across the market remains the quickest way to decarbonise, so diminishing overall uptake is not good news for the economy, for investment or for the environment.”
Hawes called for a review of the market’s performance and the regulatory mechanisms driving the transition. He highlighted the importance of incentives, infrastructure, and regulation in accelerating the shift to electric vehicles.
As the UK strives to meet its ambitious climate targets, the automotive industry will be closely watching the government’s next moves. The future of electric vehicles in the UK hinges on a combination of industry innovation, consumer demand, and supportive government policies.
