Battery electric vehicle uptake reached record volume in 2023

Battery electric vehicle (BEV) uptake reached a record volume in 2023 – up by almost 50,000 units with 314,687 new registrations, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).

This means more BEVs reached the road than in 2020 and 2021 combined.

Overall, BEVs accounted for one in six new cars registered in 2023, with the majority taken by business and fleet buyers who benefit from tax incentives.

In contrast, one in 11 private buyers chose a BEV. Since the end of the Plug-in Car Grant in June 2022, the UK is the only major European market with no consumer BEV purchase incentives – but it is now also the only market with mandated minimum targets for new ZEV registrations. The SMMT is therefore calling on government to support private buyers by halving VAT on new BEVs for three years.

Taking into account all car types, overall 2023 recorded its best year since the pandemic - 1.903 million new cars reached the road during 2023 – an increase of 17.9%.

Growth was driven entirely by fleet investment as the previous year’s supply constraints faded. Fleet deliveries rebounded by 38.7% year on year, while business registrations, a small proportion of the market, fell by -1.5%. Private consumer demand remained stable at 817,673 units after a strong recovery in 2022, with cost of living pressures and high interest rates constraining growth. While the overall new car market remains -17.7% below pre-pandemic levels, the surge in uptake compared with the previous year saw the value of new car sales jump more than £10 billion to around £70 billion, with 288,991 additional vehicles reaching the road.

Mike Hawes, SMMT Chief Executive, said: "With vehicle supply challenges fading, the new car market is building back with the best year since the pandemic. Energised by fleet investment, particularly in the latest EVs, the challenge for 2024 is to deliver a green recovery. Government has challenged the UK automotive sector with the world’s boldest transition timeline and is investing to ensure we are a major maker of electric vehicles. It must now help all drivers buy into this future, with consumer incentives that will make the UK the leading European market for ZEVs."

Looking ahead to 2024, the latest market outlook – published in November – anticipates 2024’s new car market to reach 1.97 million units, with 439,000 BEVs taking a 22.3% market share. The next quarterly revised outlook will be published in February.