Best September ever for battery electric vehicle sales

Registrations of battery electric vehicles (BEV) has hit a new record volume for any month in September, according to SMMT figures.

Sales of BEVs rose 24.4% to 56,387 units, achieving a 20.5% share of the overall market, up from 16.6% a year ago.

Fleets drove much of this growth, with deliveries rising 36.8% to account for more than three quarters (75.9%) of BEV registrations.

Private BEV demand also rose, up 3.6%, which the SMMT says is down to "unprecedented manufacturer discounting". This however was only equivalent to 410 additional registrations. Year-to-date private BEV demand remains down -6.3%

Uptake of plug-in hybrids (PHEV) grew faster than any other fuel type in the month, up 32.1% to take an 8.9% share of the market. Hybrid electric vehicle (HEV) registrations rose 2.6%, boosting market share to 14.2%, while petrol and diesel registrations declined by -9.3% and -7.1% respectively, although together they were still the choice of 56.4% of buyers in September.

SMMT calculates that manufacturers are on course to spend at least £2 billion on discounting EVs this year. Given the many billions already invested to develop and bring these models to market, the SMMT says the situation is untenable and threatens manufacturer and retailer viability. For this reason, SMMT and 12 major vehicle manufacturers representing more than 75% of the market, have today written to the Chancellor calling for measures to support consumers and help speed up the pace of the EV transition.

These include temporarily halving VAT on new EV purchases to put more than two million new ZEVs (rather than petrol or diesel) on the road by 2028.

Scrapping the VED ‘expensive car’ tax supplement for ZEVs, due next year, to avoid penalising buyers

Equalising VAT on public charging to match the 5% home charging rate, and mandating infrastructure targets to support those who cannot charge at home

Maintaining and extending the business incentives that are working, including Benefit in Kind which supports company cars and those on salary sacrifice schemes, and the important Plug-in Van Grant.

Mike Hawes, SMMT Chief Executive, said: "September’s record EV performance is good news, but look under the bonnet and there are serious concerns as the market is not growing quickly enough to meet mandated targets. Despite manufacturers spending billions on both product and market support – support that the industry cannot sustain indefinitely – market weakness is putting environmental ambitions at risk and jeopardising future investment. While we appreciate the pressures on the public purse, the Chancellor must use the forthcoming Budget to introduce bold measures on consumer support and infrastructure to get the transition back on track, and with it the economic growth and environmental benefits we all crave."