Last updated on September 12th, 2023 at 12:12 pm
The new car market in the UK experienced impressive growth in July, with the sale of battery electric vehicles (BEV) up almost 90% on the same period in 2022. Fossil fuel vehicle sales continues to decline, with diesel market share now down to just 4% and petrol down to 40%. A whopping 56% of all cars sold in July were fitted with some kind of electric motor in their drive system.
So what has been the root cause of this positivity? The Society of Motor Manufacturers and Traders (SMMT) believes that the surge in registrations can largely be attributed to improvements in the supply chain, increased production and more efficient deliveries.
The latest data compiled by the SMMT, also looked into the rate at which chargers are being installed. Toward the end of 2022, the ratio was worryingly high. Around 62 new electric vehicles were being registered for every charger being installed. Clearly, that kind of number will lead to queues and disappointment for drivers. Massive investment from both charging companies and various government departments, means that this number has fallen to 35 for the second quarter of 2023. When combined with the latest reports from Gridserve, Osprey, Connected Kerb and others- the future for EV charging in the UK is looking better.
Driving this expansion were company registrations, particularly by large fleets, which increased by almost 62%. Business registrations also witnessed a healthy rise, hitting close to a 30% increase. As you might expect, ahead of the new registrations, consumer sales were only up by a small margin. That hints at the fact that there might be solid figures to come for September.
The number of electric vehicles sold across the 10 years from 2010 to 2019 (combined) are comparable to the number being sold every six months now. The electric revolution has well and truly kicked in. In practical terms, the UK is now buying a brand new electric vehicle once every two minutes – with the SMMT predicting that this will hit closer to ‘one new EV registration per minute' by the start of 2024. .
While the increase in electric vehicle adoption is promising, experts suggest that even faster growth is necessary to outpace the rest of the market and meet ambitious environmental targets. To facilitate this, various means of support need to be implemented, including fiscal incentives and infrastructure development.
In the last quarter alone, a record high of 3,056 new standard public chargers were installed. When you combine that with the expected announcements of improved battery/drive train tech from the major car manufacturers – there will be a palpable increase in charger availability on the UK's roads over the next 18 months.
Today, there are just over 45,000 public charge points in the UK. The Government's has publicly announced a target of at least 300,000 charge points by 2030, for the UK's roll out of EVs to have been considered successful. If we add 3,000 additional EV charge points a month – through to the end of 2030 – then we will miss the target by 177,000.
To achieve 300,000 chargers by the end of 2030, the UK must increase installation to an average of 10,000 new units a month. That represents a huge investment – as well as enormous opportunities for job creation. A comprehensive strategy, including a chargepoint mandate, is essential to establish a reliable, accessible and affordable charging network.
Mike Hawes, the Chief Executive of SMMT, stressed the industry's commitment to achieving zero-emission goals and acknowledged the growing consumer interest in electric vehicles. He highlighted the importance of even more government intervention to make EV adoption economically feasible and convenient for all drivers across the country.
The UK is set to register over 300,000 new electric vehicles in 2023 – with even more to follow in 2024.
Looking ahead to 2024, the market outlook has been revised to project a market share of just under 23% – with around 440,000 BEVs shipping to UK drivers. The SMMT has indicated that nearly one-third of all new cars registered in 2024 will be plug-in vehicles.
All of this will be important for the UK's economy, with the motor trade contributing £78 billion in turnover and £16 billion in value added. It employs over 208,000 people directly and an additional 800,000 in the wider sector. As well as playing a pivotal role in various national agendas – including those related to economic growth, environmental sustainability, and innovation. It has traditionally also accounted for up to 10% of all UK goods exports.
The UK's new car market has demonstrated impressive growth in July despite ongoing challenges. The surge in registrations, especially in electric vehicles, highlights the automotive industry's resilience and potential for driving economic and environmental progress in the years ahead.