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BEVs accounted for 15.2% of all cars registered in March, the statistics showed, down from 16.2% in the same month last year. Only fleets showed any BEV volume growth.
“The fall in BEV market share within a growing market underscores the need for government to support consumers,” the industry body said. “Large fleets continue to drive BEV uptake, thanks to compelling tax incentives, but while registration volumes increased in March, market share declined. A tough economic backdrop makes it ever more challenging for consumers to invest in these new technologies.”
EV shipments from industry giants Tesla and Chinese firm BYD also fell in the first quarter of 2024, as BBC Newsnight economic editor Ben Chu highlighted in a thread on X this week.
“In the UK… there's been a levelling off since 2022,” he wrote. “Some have cited their high cost relative to petrol or diesel cars, others the inadequacy of public charging networks.”
Manufacturers are offering “generous” incentives, the SMMT said, helping more drivers switch to zero-emission vehicles and delivering government and industry carbon targets – “but this cannot be sustained indefinitely,” the announcement added.
“A full market transition needs incentives not just for fleet and business buyers but private retail buyers as well, something that would bring the UK into line with other major markets. Temporarily halving VAT on BEVs, revising the threshold for the expensive car supplement on vehicle excise duty next April, and abolishing the ‘pavement penalty’ on public EV charging by equalising VAT rates to 5%... would make a significant difference to consumers, helping more of them move to zero-emission vehicles sooner.”
Speaking on Sky News, Auto Trader commercial director Ian Plummer said that more needs to be done to boost EV demand among private buyers. He added: “Manufacturers are fighting harder than ever to tempt customers, as more than three-quarters of new electric vehicles are now advertised on our platform with discounts.”
The SMMT figures showed that hybrid EV uptake is at its highest ever levels, rising by 19.6% to 44,550 sold in March and making up 14.0% of the market. The biggest percentage growth was recorded by plug-in hybrids, up by more than a third to 24,517 units, 7.7% of all new registrations.
Overall, new car registrations rose 10.4% in the best March since 2019, making it the 20th consecutive month of growth. 317,786 new cars were sold in what is typically the busiest month of the year. Levels were still 30.6% below pre-pandemic levels, however.
Mike Hawes, SMMT chief executive, said, “Market growth continues, fuelled by fleets investing after two tough years of constrained supply. A sluggish private market and shrinking EV market share, however, show the challenge ahead. Manufacturers are providing compelling offers, but they can’t single-handedly fund the transition indefinitely. Government support for private consumers – not just business and fleets – would send a positive message and deliver a faster, fairer transition on time, and on target.”
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