The Society of Motor Manufacturers and Traders (SMMT) has revised its forecast for electric car sales in the UK this year, citing weaker demand as the reason for the change. According to the trade body, pure electric vehicles are now expected to hold an 18.5% market share in 2024, down from the previous estimate of nearly 20%.
Mike Hawes, the SMMT’s chief executive, expressed concerns over the decline in demand for electric vehicles from private buyers, despite the “generous” discounts offered by manufacturers. He emphasized the need for a faster pace of change in order to meet the UK’s climate change goals and manufacturers’ EV targets. Hawes also called for increased support for consumers and immediate action on incentives and infrastructure.
The SMMT also downgraded its overall forecast for new car registrations this year from around 1,984,000 to 1,968,000. However, the trade body reported a 2.5% increase in new car registrations in July 2023, marking the 24th consecutive month of year-on-year growth. The most popular car model last month was the Kia Sportage, which also holds the second spot for most-sold vehicle in the UK this year after the Ford Puma.
In light of these developments, the SMMT has urged the government to reduce taxes on electric vehicles in order to boost sales and help the industry reach its climate goals. This comes as the industry continues to express concerns over the slowing demand for electric cars, with major players like US giant Tesla and Chinese rival BYD reporting sales declines earlier this year.
