Electric car sales top 2 million as market rebounds after tax changes

Latest figures published by the Society of Motor Manufacturers and Traders (SMMT) show the UK new car market grew 24% year-on-year in April, with 2 million battery electric cars (BEVs) now on the roads.

The increase reflects a rebound from an unusually weak April last year when purchases were brought forward to March to avoid incoming increases to vehicle tax, including the application of VED and the Expensive Car Supplement (ECS) on BEVs.

April also saw the two millionth battery electric car registered, following bumper growth of 59.1% compared with last year. As a result, BEV uptake reached a robust 26.2% share of registrations in the month. Year to date, BEVs comprise 23.1% of the overall new car market, significantly short of the 33% government target for zero emission vehicle sales, despite the introduction of the Electric Car grant discount scheme.

Demand for petrol cars rose 8.2%, while diesel registrations fell -1.0%. Plug-in hybrid (PHEV) registrations rose 46.4% to take a 13.8% market share, while hybrid electric vehicles (HEVs) increased 18.8%, securing 13.2% of new registrations, meaning electrified cars accounted for more than half of all new cars sold for the second consecutive month.

Growth was recorded in all sectors of the car market, led by fleets, up 26.8%. Private retail deliveries grew 20.2% to reach 56,116, while registrations by the smaller business sector rose 15.0%.

Mike Hawes, SMMT Chief Executive, commented:

“April’s rebound is welcome, but underlines just how significantly fiscal changes can influence the market. Two million electric car registrations is a considerable milestone to celebrate, although natural demand is still well below the level demanded by the mandate.

“The mounting cost of compliance threatens to limit consumer choice, overall decarbonisation and the sector’s competitiveness so the need for a rapid review of the transition to align policy with market realities is unchanged, else Britain’s attractiveness as a vehicle market and manufacturing hub will be put at risk.”