A return to growth, but OEM incentives are still not converting the BEV customer.

May Statistics from SMMT

• The UK’s new car market returned to growth in May, as registrations rose 1.6% to 150,070 units, according to the latest data published today by the Society of Motor Manufacturers and Traders (SMMT). It was the best May performance since 2021, but still, 18.3% lower than in pre-pandemic 2019 and only the second month of growth this year, reflecting brittle consumer confidence and economic turbulence.
• Registrations of battery electric vehicles (BEVs), meanwhile, rose by 25.8%, accounting for 21.8% of the market as manufacturers continued to support sales with attractive incentives.
• Despite this, BEV registrations year-to-date have only reached 20.9% market share – still seven percentage points off the 28% mandated by regulation. Moreover, significant discounting is still ongoing despite new model introductions and increasingly affordable offerings.
• Manufacturers are investing billions to deliver zero emission mobility for all, and consumers are responding but not in the volumes needed, so industry calls on government to match this commitment with fiscal incentives. Halving VAT on new EV purchases would put 267,000 additional new EVs – rather than fossil fuel vehicles, on the road in the next three years and drive down CO2 emissions by six million tonnes a year. Removing EVs from the VED Expensive Car Supplement, meanwhile, and equalising VAT paid on public charging to that levied at home would send a signal that now is the time to switch.

Statistics and commentary from SMMT