EV demand triples amidst falling registrations

Demand for electric vehicles ballooned by 158% last month, suggesting its market share could double by 2020. This comes despite a 4.1% decline in new car registrations.

According to figures released by the SMMT, declines were seen across all sectors, with private demand falling two per cent, while deliveries for fleet and business customers were down 4.7% and 22.5% respectively.

Luxury saloons and specialist sports cars experienced a rise in registrations in the month with volumes driven by increased demand for dual purpose vehicles, up 12.8% to take nearly a quarter (24.4%) of the market. All other segments experienced declines in the month, with the biggest falls seen in executive (21.6%) and supermini (12.1%) segments.

Registrations of diesel vehicles fell for the 28th month, down 22.1%, while petrols remained stable, with 2,646 more registrations than in July 2018. Hybrid electric cars increased by a substantial 34.2%, with 7,758 of these low-emission vehicles joining UK roads. Meanwhile, plug-in hybrid electric vehicles continued their recent decline, down 49.6%.

But demand for battery electric vehicles bucked the trend with a massive 158.1% increase, resulting in a 1.4% market share, the highest monthly market share on record.

SMMT forecasts this ongoing investment into new, ever more advanced powertrain technology will result in battery electric vehicles doubling their market share next year, with 51,000 registrations in 2020. However, this will still represent only 2.2% of the overall market. For the UK is to meet its zero emission ambitions, we need world-class, long-term incentives, supportive policies and substantial investment in infrastructure.

Mike Hawes, SMMT chief executive, said, ‘Despite yet another month of decline in the new car market, it’s encouraging to see substantial growth in zero emission vehicles. Thanks to manufacturers’ investment in these new technologies over many years, these cars are coming to market in greater numbers than ever before. If the UK is to meet its environmental ambitions, however, government must create the right conditions to drive uptake, including long-term incentives and investment in infrastructure. The fastest way to address air quality concerns is through fleet renewal so buyers need to be given the confidence to invest in the new, cleaner vehicles that best suit their driving needs, regardless of how they are powered.’