Electric cars running out of charge as sales forecast downgraded
Electric vehicle (EV) sales forecasts have been lowered despite nine consecutive months of growth in the UK car market, as concerns build over inadequate charging infrastructure in the UK.
According to the Society of Motor Manufacturers and Traders’ (SMMT) forecasts, 22.6 per cent of new car registrations will now be battery electric vehicles (BEVs) by 2024, down from forecasts of 23.3 per cent in January. BEV market share forecasts were also softened to 18.4 per cent, down from 19.7 per cent.
This is despite April seeing an 11.6 per cent total increase in car registrations, marking a ninth consecutive month of growth and the strongest April performance since supply chain disruptions first hit the headlines – although total volumes remain 17.4 per cent under pre-pandemic levels.
The downgrade comes as “chargepoint anxiety” begins to “cast a cloud” over the sector’s willingness to adopt electric vehicles, SMMT chief executive Mike Hawes said, in what is the latest criticism of inadequate charging infrastructure.
Electrified vehicles still made up more than one in three registrations in April, with BEVs the second most popular fuel type overall.
The overall market has now seen its best start to a year since the pandemic, with growth at £3.2bn, up 16.9 per cent, according to SMMT figures.
Hawes, however, argued that EV investment is urgently needed.
“To ensure all drivers can benefit from electric vehicles, we need everyone – government, local authorities, energy companies and charging providers – to accelerate their investment in the transition and bolster consumer confidence in making the switch,” he said.
David Borland, EY UK and Ireland automotive leader, said: “Short-term plug-in vehicle demand will continue to contend with insufficient charging infrastructure and changes in the total cost of ownership for battery electric vehicles driven by high energy costs.”
EVs still out of reach for ‘the vast majority’
Ian Plummer, commercial director at Auto Trader, said the “softening” of the SMMT’s forecasts on EV sales was a “cause for concern” and “underlines our recent call for measures needed to support the EV market, such as cutting VAT on public chargers”.
“With the average electric car costing 37 per cent more than a petrol or diesel alternative, and a shrinking range of affordable choices available, the simple fact is that for the vast majority of people a brand new EV is out of reach.”
The VAT tax on EVs currently sits at 20 per cent, with industry figures saying it should be as low as five. In November, Jeremy Hunt announced that electric car owners would have to pay a vehicle excise duty, better known as a road tax, in 2025.
With a zero-emission vehicle mandate set to be imposed next year, the SMMT said that “more incentives” and investment to encourage buyers to go electric would be “essential” to accelerate uptake.