EV market share strengthens, but easing petrol prices could hamper transition efforts
According to the latest SMMT new registrations data new car registrations reached 213,166 units, a 11.4% increase year-on-year.
Battery electric vehicle (BEV) registrations increased by 35% year-on-year to 63,950 units, accounting for 30% market share and continuing a longer-term growth trend.
Commenting on the latest data, Sheena McGuinness, Co-head of Energy and Natural Resources at RSM UK, said: “The electric vehicles (EV) market share continues to move in the right direction, with consumer appetite boosted by the elevated petrol prices seen in recent months. However, as fuel prices begin to ease back, petrol vehicles may once again become a more cost effective, viable option for consumers. This could in turn see a decline in the market share of battery electric vehicles (BEV) in the coming months.
“EV running costs are not immune to the impact of higher energy prices, which has a knock-on impact on the price of charging. Paired wlith the introduction of various taxes and charges, such as Vehicle Excise Duty, from which they were previously exempt, this reduces the competitive advantage that EVs held over internal combustion engine (ICE) vehicles due to their lower overall running costs. There also remains a considerable disparity between the costs of public and private charging which could diminish the appeal of EVs to people without access to private charging.
“There is a risk that persistent cost-of-living headwinds squeezing consumers’ disposable income could dampen overall appetite for new vehicles in the coming months.
“We are yet to see the recommendations published by the Environment and Climate Change Committee in 2024 come to fruition, which were set out to address the key barriers to long-term EV transition efforts. Coupled with falling petrol prices, we might begin to see the relative market share plateau or even reverse in the next six to 12 months.”