April – Spring still brings green shoots for EV, but tax hits home
- The UK’s new car market fell by -10.4% in April, with 120,331 units registered, according to the latest data published today by the Society of Motor Manufacturers and Traders (SMMT). It was the sixth fall in the last seven months, reflecting a fragile economic backdrop and weakened consumer confidence, with 13,943 fewer cars registered in the month compared with the year before and 25.3% behind pre-pandemic April 2019.1
- Registrations fell across all sales types, with private, fleet and business demand down -7.9%, -11.9% and -10.9% respectively. Continuing market trends, fleet buyers drove activity, responsible for six in 10 registrations. Regarding powertrain performance, demand for hybrid electric vehicles (HEVs) fell -2.9%, with petrol and diesel registrations down –22.0% and –26.2% respectively. Conversely, registrations of vehicles with a plug rose: plug-in hybrids (PHEV) up 34.1% and battery electric vehicles (BEV) increasing 8.1% to 24,558 units, taking more than a fifth (20.4%) of the market.
- There is now a huge range of BEVs on the market, with more than 130 models available – including an increasing number at lower price points – the result of massive investment by manufacturers to offer electric options for all consumers across all segments. Year-to-date, the new car market is up 3.1% and, with new BEV registrations up 35.2% to push market share to 20.7%, these models are now the second most popular powertrain after petrol but still below the 28% required under market regulations. While the government’s recently proposed amendments to the Zero Emission Vehicle Mandate requirements are welcome, recognising the intense pressure on the sector, the targets remain incredibly challenging, and more must be done to stimulate demand.
“April’s performance is disappointing but expected after March’s surge. Another month of growth for electric vehicle registrations is good news, however, even if demand remains well below ambition. Recent government adjustments to flexibilities and compliance within the ZEV Mandate are welcome and an important first step in relieving some of the pressure on the market and manufacturers.
However, EV uptake is still being heavily and unsustainably subsidised by the industry which is why a compelling package of measures from government is essential if consumers are going to make the switch.”
Mike Hawes, SMMT Chief Executive
Statistics and commentary from SMMT
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