April uptake of EVs rise but demand remains below ambition

Battery electric vehicles (BEV) increased 8.1% to 24,558 units in April, the latest SMMT data shows.

Despite taking a market share of 20.4%, the SMMT warns that this is still significantly below Zero Emission Vehicle Mandate requirement.

Plug-in hybrids (PHEV) registrations rose 34.1% in April, while petrol and diesel registrations were down –22.0% and –26.2% respectively.

Overall the UK’s new car market fell -10.4% in April, with 120,331 units registered, however, the SMMT says that April is traditionally a quieter month following the March plate change. Volumes were also impacted by the late timing of Easter, resulting in fewer working days. In addition, the implementation of VED changes affecting all new cars, including the Expensive Car Supplement which became applicable to many new EVs from 1 April, pushed transactions into March as shrewd buyers got ahead of the tax increases.

Registrations fell across all sales types, with private, fleet and business demand down -7.9%, -11.9% and -10.9% respectively. Continuing market trends, fleet buyers drove activity, responsible for six in 10 registrations.  

The SMMT says that there is now a more than 130 battery electric models available – including an increasing number at lower price points – the result of massive investment by manufacturers to offer electric options for all consumers across all segments. Year-to-date the new car market is up 3.1% and, with new BEV registrations up 35.2% to push market share to 20.7%, these models are now the second most popular powertrain after petrol but still below the 28% required under market regulations. The SMMT says that the targets still remain incredibly challenging and more must be done to stimulate demand.

The importance of government incentives to boost volumes remains paramount. Halving VAT on new EV purchases; scrapping, or amending, the VED Expensive Car Supplement; and equalising VAT paid on public charging to that levied at home would all help boost the market and send a strong signal to any hesitant buyers that now is the time to go electric.

Mike Hawes, SMMT Chief Executive, said: "April’s performance is disappointing but expected after March’s surge. Another month of growth for electric vehicle registrations is good news, however, even if demand remains well below ambition. Recent government adjustments to flexibilities and compliance within the ZEV Mandate are welcome and an important first step in relieving some of the pressure on the market and manufacturers.

"However, EV uptake is still being heavily and unsustainably subsidised by the industry which is why a compelling package of measures from government is essential if consumers are going to make the switch."