Almost half of new cars sold are now electric or hybrid

Almost half (48.5%) of all new cars sold in the UK last month were electric vehicles (EVs) or hybrids, according to new figures from the Society of Motor Manufacturers and Traders (SMMT).

Sales of battery EVs (BEVs) jumped by 39.1% to 47,354 in June, the SMMT statistics showed today (4 July), equivalent to almost a quarter (24.8%) of the market. Plug-in hybrids grew by 28.8% to 21,382 units, while the market for new conventional hybrids fell slightly by 8.5% to 23,835 registrations.

Despite the growth, BEV registrations are still “significantly behind” the 28% market share mandated for this year, the SMMT said, with levels standing at 21.6% for the year so far.

A recent survey of automotive CEOs carried out for SMMT’s Automotive Business Leaders Barometer found that more than half (55%) believe the UK is significantly behind plans to meet the 2030 end of sale of new cars powered solely by combustion engines.

“A lack of governmental purchase and charging incentives, combined with fiscal disincentives such as the newly applied VED Expensive Car Supplement (ECS), which is estimated to impose an effective fine of more than £360m on BEVs bought from April in this year alone, are acting as a brake on BEV demand,” the announcement said.

“Industry bosses have reaffirmed this, citing fiscal incentives for private BEV sales as the biggest single action needed to boost BEV demand, economic growth and the UK’s automotive manufacturing base – a key objective of the government’s new Industrial Strategy.

“Amending the ECS to remove the majority of BEVs from its scope and cutting VAT on new BEVs and public charging would boost demand significantly. This would also help deliver a vibrant domestic market, becoming a leader not just in decarbonisation but in affordability. If implemented for three years, an additional 267,000 BEVs – rather than fossil fuel vehicles – would be put on the road, driving down CO₂ emissions by six million tonnes a year.”

Overall, the new car market grew for the second consecutive month in June, with registrations rising 6.7% to 191,316 units. The best June since 2019 was still 14.4% lower than pre-pandemic levels.

“A second consecutive month of growth for the new car market is good news, as is the positive performance of EVs,” said Mike Hawes, SMMT chief executive.

“That EV growth, however, is still being driven by substantial industry support, with manufacturers using every channel and unsustainable discounting to drive activity… As we have seen in other countries, government incentives can supercharge the market transition, without which the climate change ambitions we all share will be under threat.”

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