The Chief Executive of the Society of Motor Manufacturers & Traders (SMMT) has said that all eyes are now on September—from which time new cars will be registered with a 74-plate—as this will provide a true barometer for EV demand.
In his latest CEO update last week, Mike Hawes said:
Figures released yesterday by SMMT revealed how the UK new car market held steady in August, down just -1.3% to 84,575 units, with many buyers preferring to wait for September’s new number plate. This hold back invariably means August is the quietest month of the year and subject to a degree of volatility as a result.
Nevertheless, there was welcome growth in demand for the latest battery electric vehicles (BEVs) with the market up 10.8%. This has come at a cost, however, with a summer of heavy discounting by manufacturers and a raft of new models introduced to stimulate demand. The new BEV market rose to 22.6% – the highest for a month since December 2022, when BEVs commanded 32.9% market share and a performance in excess of the Zero Emission Vehicle mandated target of 22%. Of course, one month does not make a market and, year to date, BEV market share has edged up to 17.2%, still around 5% below the mandate target, although there are flexibilities behind that figure.
SMMT’s latest forecast expects BEV share to rise further to 18.5% and some 364,000 BEVs registrations by the end of the year, thanks to ever increasing model choice. This is undoubted progress but it is fleet buyers driving the market for new BEVs, thanks to the attractive fiscal incentives on offer, whereas private retail buyers have nothing of the sort.
The story is not dissimilar in the light commercial vehicle market, which was up 1.7% overall but battery electric van sales declined -30.3% to take a 5.5% share. Fleet buyers need certainty too: certainty about the future of the Plug in Van Grant, certainty about future fiscal rates and certainty that van-specific charging infrastructure will be forthcoming.
All eyes are now on September as this will provide a true barometer for EV demand, with manufacturers pulling every lever to attract buyers into showrooms.
Industry can only do so much, however, and ahead of the Autumn Budget due on 30 October, the industry is calling for urgent action to bolster the market for new EVs. Measures should include the reintroduction of incentives for private buyers, the removal of disincentives such as the forthcoming Vehicle Excise Duty expensive car supplement, and binding targets on public chargepoint provision commensurate with those placed on industry.
Ultimately, we all want to see the decarbonisation of road transport and the UK meet its net zero targets. Manufacturers continue to invest billions in this transition but we need all stakeholders to come together to accelerate it, and do so in a way which does not damage consumer choice or the automotive industry itself.
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