The upcoming government is being urged to take further action in promoting the transition to electric vehicles, as private sales of new pure battery models have declined. Recent data released by the Society of Motor Manufacturers and Traders (SMMT) covering May shows a 2% dip in UK sales of new battery electric vehicles (BEVs) among consumers compared to the same month in 2023. The chief executive of the organization, Mike Hawes, noted that this decline occurred despite the availability of “very attractive offers” to entice buyers.
Hawes cautioned that manufacturers cannot continue to sustain such high levels of discounting and called for a fairer transition to be implemented. He emphasized the need for government support in the form of “carrots, not just sticks” to facilitate an increase in future uptake of electric vehicles.
The latest development in the election sees the Watchdog examining PM’s claims about Labour tax plans. Analysts attribute the weak demand for electric vehicles in the private buyer market to the pressure of rising cost of living and concerns over the availability of affordable vehicles and charging infrastructure. However, the overall sales picture remains positive, with a 6.2% increase in BEV registrations in May and a 1.7% rise in total sales of all new models, driven by large fleet sales. Hybrid vehicles have also gained popularity as an alternative.
The SMMT highlights that the demand for BEVs among private buyers falls short of the government’s Vehicle Emissions Trading Scheme target, which stipulates that 22% of new vehicles sold this year by each brand must be zero emission. With over 100 electric vehicle models now available and various enticing offers from manufacturers, the industry is committed to driving change. However, the SMMT stresses that meeting targets will require more support.
In March, the SMMT criticized the government’s decision to delay the ban on the sale of new petrol and diesel cars until 2035, stating that it has resulted in a slowdown in electric vehicle purchases. The industry had previously aimed for a 2030 deadline before the government’s U-turn in September last year, citing cost concerns. The SMMT had warned that this change would hinder investment and impede efforts to combat climate change. The organization has suggested the reinstatement of financial incentives, including scrappage schemes. As the main political parties have yet to publish their manifestos, their stance on this issue remains unknown.
Ian Plummer, commercial director at online vehicle marketplace Auto Trader, believes that manufacturers also share responsibility for the low uptake of electric vehicles. He notes that the rising prices of new cars since 2019 have resulted in a decrease in affordable options, with only 4% of new models now available for under £20,000, compared to 17% in the past five years.
Jamie Hamilton, automotive partner and head of electric vehicles at the consultancy Deloitte, stresses the need to address the main barriers preventing the average consumer from considering a switch to electric. He points out that currently, electric vehicles may not be a feasible option for consumers unless they have access to overnight charging at home. Hamilton emphasizes the need for more publicly available charging stations, as well as the expected influx of new low-cost electric vehicle options this year, which may entice more consumers to make the transition.
