Commenting on the latest SMMT new registrations data, Sheena McGuinness, Co-head of Energy and Natural Resources at RSM UK, said: “The latest SMMT figures show a dramatic uptick in Battery Electric Vehicles (BEV), which reached a new record of 86,120 registrations in the month, up 24.2%. This is unsurprising, given the spiking petrol prices we have seen due to the ongoing geopolitical tensions in the Middle East, alongside rising fears of fuel shortages and rationing.

“However, with a market share of 22.4% for the year to date, the BEV uptake remains far off the government’s mandate targets for 2026. As geopolitical tensions drive ongoing uncertainty over inflation and interest rates, cost-of-living pressures heighten, and consumer confidence remains under strain, we could see a paring back on new car purchases altogether.

“We are already seeing some businesses adding a surcharge to their services in response to the rising cost of transportation - a clear indication of the marked impact that the conflict is having on costs.

“EV running costs are also not immune to the impact of the conflict, particularly when considering the risks of hiking energy prices, and the knock-on impact this could have on the cost of charging. Within a week of the start of the recent crisis in the Middle East, the cost of Liquefied Natural Gas (LNG) imports to the UK increased by 60%, as the UK imports virtually all its LNG requirements. This is in stark contrast to the 12% increase seen by the US, which has a larger domestic access to this resource – demonstrating the UK’s acute vulnerability to energy volatility.

“If high energy prices persist, then drivers across the board will start to feel the impact so we could see paralysis in sales in 2026.”

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