SMMT new registrations: EV sales up but short of government target as new car sales slump in July
The latest SMMT new registrations data saw registrations of new cars decline by 5% in the year to July at 140,154 units from 147,517 in July 2024.
Battery electric vehicle (BEV) registrations continued recent growth trends, with volumes up by 9.1% year-on-year in July, representing a 21.3% 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: “While the new car market fell in the year to July, most likely driven by the cost-of-living crisis and tax increases squeezing household budgets, new electric vehicle (EV) registrations continue to rise. This represents a 9.1% uptick of market share on the same period last year. Although it’s positive to see this upward trend in EVs as the 2030 ban on new petrol and diesel cars approaches, the UK is still falling short of the government’s Zero Emission Vehicle (ZEV) mandate, which requires 28% of new car sales to be ZEVs in 2025.
“The increase in EV registrations is likely driven by incentives offered by car manufacturers rather than by government schemes. However, with the government ban on petrol and diesel cars looming, the industry needs to see stellar rather than steady action to accelerate the transition to EVs. Last month saw the welcome launch of the Electric Car Grant scheme, with £650m earmarked to make EVs more affordable and accessible. As it stands, only a handful of models have been approved so far, with a slow approval process causing delays and impacting sales, especially in the run up to the September plate-change period.”
She added: “Further challenges include limited infrastructure support. While the grant helps with upfront costs, charging infrastructure is still lagging in some regions. Although the government announced funding allocated to improve charging infrastructure, it’s still not enough to give consumers the confidence to make the switch. To see a marked improvement in the uptake of EVs, the industry needs a streamlined approval process, additional infrastructure investment, and expanded eligibility requirements. This will create faster pathways for manufacturers to qualify for the Electric Car Grant scheme, as well as making EVs more affordable and accessible for consumers.”