Electric vehicle uptake hits record high, but fails to meet government target
The latest SMMT new registrations data saw registrations of new cars rise by 13.7% in the year to September to 312,891 units, the highest level in September since 2020.
Battery electric vehicle (BEV) registrations increased by 29.1%, in line with growth trends this year. It was the best month on record for BEV volumes, with 72,779 units in September, accounting for 23.3% of overall market share. However, the BEV market is still falling below the government’s 28% target set for 2025.
Sheena McGuinness, Co-head of Energy and Natural Resources at RSM UK, comments: “The latest SMMT data shows a strong rebound in new car registrations following a slow August, with battery electric vehicles (BEVs) up 29.1% year-on-year and reaching a record number of units in September. This marks the best month on record for BEV volumes and signals growing consumer confidence towards EVs. The uptick has been driven by a combination of factors, including discounts from car manufacturers, greater availability of EVs, and the introduction of the Electric Car Grant scheme, with the latter helping to stimulate consumer demand.
“More encouragingly, it seems that despite EVs being included in the expensive car levy, this hasn’t dampened market appetite, with sales indicating that consumers are increasingly prioritising sustainable models. However, while BEVs accounted for 23.3% of the market in September, this remains below the government’s Zero Emission Vehicle (ZEV) mandate target of 28% by 2025. It’s clear that further intervention is needed to accelerate uptake, especially as the government has outlined its plans to ban the sale of new petrol and diesel cars from 2030.”
She added: “Given the fiscal constraints facing the Treasury, it’s unlikely we’ll see increased funding for traditional grant schemes in the Autumn Budget. However, there is scope for the Chancellor to introduce a new tax relief within a set timeframe which incentivises consumers to switch to EVs by offering them a discount on their tax bill. Infrastructure also remains a critical barrier, with limited charging networks preventing more from making the switch. We’re waiting on the launch of the Connections Accelerator Service to enhance grid connection, but investment is also needed. Introducing a super deduction for investment in charging networks could help to unlock private capital and accelerate deployment across the UK to deliver a more equitable and accessible EV transition.”