BEV registrations rise by more than a quarter in May

Registrations of battery electric vehicles (BEVs) rose by 25.8% in May, accounting for 21.8% of the market, the latest SMMT figures show.

Despite this, however, BEV registrations year-to-date have only reached 20.9% market share – still seven percentage points off the 28% mandated by regulation. The SMMT says that heavy discounting by manufacturers is driving the growth, but that such measures are "unsustainable".

Uptake of hybrid electric vehicles (HEVs) grew by 6.8% to 20,351 units in May, while plug-in hybrid electric vehicles (PHEVs) were up more than half (50.8%) to 17,898. 

Overall, registrations of all vehicle types rose 1.6% to 150,070 units, making it the best May performance since 2021.

Fleets and businesses were mostly responsible for the growth, up 3.7% and 14.4% respectively and responsible for 62.6% of registrations, while interest from private buyers fell for the second consecutive month, down -2.3%. There were double digit declines in deliveries of both petrol and diesel cars – down -12.5% and -15.5%.

The SMMT says that manufacturers are investing billions to deliver zero emission mobility for all, and consumers are responding but not in the volumes needed – so industry calls on government to match this commitment with fiscal incentives. Halving VAT on new EV purchases would put 267,000 additional new EVs – rather than fossil fuel vehicles – on the road in the next three years and drive down CO2 emissions by six million tonnes a year. Removing EVs from the VED Expensive Car Supplement, meanwhile, and equalising VAT paid on public charging to that levied at home would send a signal that now is the time to switch.

Mike Hawes, SMMT Chief Executive: "A return to growth for new car registrations in May is welcome but manufacturer discounting on new products continues to underpin the market, notably for electric vehicles. This cannot be sustained indefinitely as it undermines the ability of companies to invest in new product development – investments which are integral to the decarbonisation of all road transport. Next week’s Spending Review is the opportunity for government to double down on its commitments to Net Zero by driving demand through fiscal measures that boost the market and shore up our competitiveness."