Electric car sales 'soar' as petrol and diesel decline

Sales of electric cars soared last month despite an overall decline in the market.

In July, owners registered 161,997 new cars – a fall of 9.3% and the fourth consecutive monthly drop. However, demand for alternatively fuelled vehicles (AFVs) – including fully-electric and hybrid models – jumped by 64.9% as people bought 8,871.

The figures, published by the Society of Motor Manufacturers and Traders (SMMT), show AFVs took a record 5.5% market share. Nearly 70,000 AFVs have joined the roads since the start of the year, while sales of new petrol and diesel cars declined by 3% and 20.1% respectively last month.

The news follows the Government announcement last week that the sale of petrol and diesel cars and vans will be banned from 2040. SMMT chief executive Mike Hawes claimed the ban risks “undermining” the UK automotive sector if more buying incentives are not offered to the public.

Today, Hawes said uncertainty around Brexit is fuelling a fall in consumer and business confidence and hitting car sales. “While it's encouraging to see record achievements for AFVs, consumers considering other fuel types will have undoubtedly been affected by the uncertainty surrounding the government's clean air plans,” he said.

The lower demand in recent months will mean more competition from manufacturers, Hawes added, making it “a good opportunity for consumers to get a great deal on their next car”.

Despite the overall drop in demand from business, fleets and private buyers – decreases of 23.8%, 10.1% and 6.8% respectively – the SMMT said sales for the overall year so far remain strong thanks to a good first quarter, with more than 1.5 million new cars registered since January.