‘Heavy discounting’ sparks new electric car sales surge
New electric vehicle (EV) registrations jumped in August as “heavy discounting” by manufacturers and a raft of new models tempted consumers to make the switch.
The latest figures from the Society of Motor Manufacturers and Traders (SMMT) reveal a 10.8 per cent increase in battery electric vehicle (BEV) registrations in the last month.
BEVs now command 22.6 per cent of the UK’s market share, the highest monthly total since December 2022 when BEVs made up 32.9 per cent of all new cars reaching the road.
August is typically a quieter month for the UK car sales, with buyers preferring to hold until September’s number plate change to make any purchases.
Total car registrations fell 1.3 per cent to 84,575 vehicles, as petrol and diesel uptake dipped 10.1 and 7.3 per cent respectively.
“August’s EV growth is welcome, but it’s always a very low volume month and so subject to distortions ahead of September’s number plate change,” Mike Hawes, SMMT chief executive, said.
“The introduction of the new 74 plate, together with a raft of compelling offers and discounts from manufacturers, plus growing model choice, will help increase purchase consideration and be a true barometer for market demand.”
Electric car boost comes after Volvo decision
It comes as a number of leading carmakers row back on green targets amid concern over consumer demand, rollout of EV charging infrastructure and the introduction of new tariffs.
“Encouraging a mass market shift to EVs remains a challenge… and urgent action must be taken to help buyers overcome affordability issues and concerns about chargepoint provision,” Hawes said.
There is debate in the sector over the state of sales to private buyers in the UK. A number of experts argue industry figures portray an innacurate picture as they fail incorporate growth from salary sacrifice schemes and private leasing under private demand.
Richard Peberdy, UK head of automotive for KPMG, said: “New car sales are up on this time last year, with fleets continuing to be the driver of growth in the market.
“Benefit-in-kind and salary sacrifice incentives for business have been the major driver of growth in EV sales and market share for some time now. “
“The evidence increasingly suggests that accelerating private EV sales may require similar incentivisation, particularly if the government is going to reinstate the 2030 end to new petrol and diesel vehicle sales.”