EV market share on the rise, but cost-of-living pressures could slow down new registrations
Commenting on the latest SMMT new registrations data, Sheena McGuinness, Co-head of Energy and Natural Resources at RSM UK, said: “Today’s figures show the continued trend of electric vehicle (EV) appetite, with battery electric vehicle (BEV) registrations increasing to 27.3% of the market share. While still some way off the government’s mandated targets, the continued upward trajectory shows that the market is moving in the right direction.
“However, although we are seeing year-on-year relative increase in EV market share, there is a risk that new registrations will slow down across the year as continued cost-of-living pressures and uncertainty over the economic outlook for the rest of 2026 drive consumers to tighten their purse strings.
“With the price of petrol and diesel remaining high, measures that ease the costs of EVs could have a substantial impact on consumer appetite. The recent announcement that France have stated their support for British-made cars to qualify for “Made in Europe” subsidies, for example, could provide a much-needed boost to the UK’s automotive market. If this comes into fruition, it will enable UK electric vehicles to benefit from the same subsidies and tax breaks as their European counterparts, helping to ease cost pressures and support investment and long-term transition goals amid a challenging economic backdrop.
“The government has taken steps to ease the cost of living on workers with HMRC’s decision to raise Approved Mileage Allowance Payments (AMAPs) for employees using company cars and car allowances. Given that electric vehicle rates remain unchanged, this could add to the appeal of electric vehicle fleets for businesses now faced with absorbing additional costs due to the renewed rates. This, in turn, could drive a further uptick in EV registrations.”