Fleet demand for EVs driving progress to 2030 target

Auto Trader has released its Road to 2030 Report, which tracks the progress of electric vehicle (EV) adoption as the UK moves closer to the 2030 ban on new petrol and diesel car sales.

The report says that the number of new electric cars registered in the UK has continued to rise into the start of 2023 with the Society of Motor Manufacturers and Traders (SMMT) reporting 76,233 new battery electric car sales in the  first quarter, up 18.8% on last year’s levels.

Strong demand for EVs from businesses and fleet operators is driving the increase in the number sold as low taxation rates make the switch more attractive - especially through salary sacrifice schemes.

The report says that whilst it’s been an encouraging start to the year in absolute terms, the rate of growth will need to accelerate as the new car market recovers from long-lasting supply constraints and electric’s market penetration begins to flatten at around 16.5% (based on a 12-month rolling average until March 2023).

The report says that in sharp contrast to the fleet market, retail demand for new EVs has fallen as the cost of living crisis deters private buyers from making the expensive switch.

The number of enquiries sent to retailers about new electric cars has fallen 65% year-on-year, and they now only account for 9% of all new car enquiries, compared to 27% at the same time last year. This has been exacerbated by private buyers not receiving any financial support from purchasing an electric vehicle via a retailer.

As retail buyers typically account for around half of all new car sales, it will be important that uptake improves dramatically before the 2030 deadline, but there are few signs of this changing in the short-term beyond the possibility of fuel prices rising. In the first quarter of 2023, 52% of new cars looked at on Auto Trader were petrol, up from 47% the year prior. This switch back to petrol follows continuous declines in its market share since the start of 2020.