United Kingdom (Commonwealth Union)_The UK sold its one millionth electric car last month, despite a big drop in sales, new figures suggest.
There were around 1,560,000 plug-in cars, as of the end of December 2023, with around 975,000 battery-electric cars and 590,000 PHEVs registered. In 2023, more than 452,000 plug-in hybrid and battery-electric cars were registered, showing a growth of 41% on 2022.
New EV registrations by private buyers fell by a quarter in January, threatening to undermine the United Kingdom’s net zero promises.
The Society of Motor Manufacturers and Traders (SMMT) said that overall new car sales to private customers fell by 16% in the same period.
The figures have sparked more calls for tax cuts to boost uptake amongst buyers.
The UK’s one millionth battery electric car (BEV) reached the road in January, a milestone reached since 2002 in spite of suggestions that sales of new electric vehicles are falling.
In January, more than 20,000 BEVs were registered, up by a fifth year on year and helped by generous tax incentives for company car users.
Fleet buyers – companies purchasing more than 25 units in one go have been entirely behind the increase, with demand for BEVs growing by over 40 percent.
But falling private registrations mean that electric cars accounted for 14% of new vehicles sold in the United Kingdom in January — below the 2023 figure of 16.5%.
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It has led to calls from the SMMT to renew calls for the government to utilise the upcoming budget to halve VAT on electric vehicles in order to boost demand from private buyers.
SMMT boss Mike Hawes said it had taken just over 20 years to reach their million EV milestone – but that with the right policies, they could double down on that success in just another two.
He went on to say that manufacturers have been asked to supply the vehicles. He added that they now ask government to help consumers purchase the vehicles on which net zero depends.
Electric vehicles have lower running costs than petrol and diesel vehicles, but the upfront price is around 30-40% higher, according to the motoring organisation.
Presently those buying an electric vehicle in the United Kingdom through a business, a company car or salary sacrifice scheme can benefit from generous tax incentives. In 2022, grants for individuals were phased out by the government.
Last year, Prime Minister Rishi Sunak confirmed tht a ban on new petrol and diesel car sales was being pushed back five years from 2030 to 2035.
The announcement was met with a mixed response from car-makers, several of which have begun investing heavily in electric vehicle production.
Firms will still be forced to meet strict quotas for selling electric cars from January despite the delay in the ban, ensuring that more than one in five cars sold are zero emission models. If not, they will face heavy fines and the target will go up every year until 2030.
The overall new car market grew in January, pushed by a large increase in fleet sales, which were up by a third according to the latest SMMT figures.
This was in spite of a fall in in overall registrations of new private cars last month, which fell by 16%.
Fleet sales accounted for more than 6 out of 10 new cars registered in the month, this figure being up from just over half last year.
