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Electric cars show road ahead after ‘lost year’ for UK automotive

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Stock image. Electric cars were a rare bright spark for the UK automotive sector in 2020 (Credit: Shutterstock)
Stock image. Electric cars were a rare bright spark for the UK automotive sector in 2020 (Credit: Shutterstock)

The vital importance of electric cars to the future of UK automotive is clearer than ever after a “lost year” for the sector, manufacturers have said.

Battery electric and hybrid cars were a solitary bright spark in 2020, which saw the new car market fall by almost a third (29.4%) according to the Society of Motor Manufacturers and Traders (SMMT).

Annual registrations dropped to 1,631,064 units, according to SMMT figures published today (6 January) – a fall of 680,076 units to the lowest level of registrations since 1992. The industry lost more than £20bn against the backdrop of Covid-19 restrictions, an acceleration of the petrol and diesel ban and Brexit uncertainty.

It was, however, a bumper year for battery and plug-in hybrid electric cars, which together accounted for more than one in 10 registrations – up from about one in 30 in 2019. Demand for battery electric vehicles (BEVs) grew by 185.9% to 108,205 units, while registrations of plug-in hybrids (PHEVs) rose 91.2% to 66,877. 

The SMMT said there is still room for growth as most of the registrations (68%) were for company cars, indicating that private buyers might need stronger incentives to make the switch, as well as more investment in charging infrastructure.

More than 100 plug-in car models are now available to UK buyers, and manufacturers are scheduled to bring more than 35 to market in 2021 – more than the number of either petrol or diesel new models planned for the year.

“To increase uptake will require others to match the industry’s commitment to electrification and SMMT will continue to work with government on the detail of a strategy to deliver a successful, rapid transition that benefits all of society and safeguards automotive manufacturing with sufficient battery production capacity,” the organisation said.

Chief executive Mike Hawes said: “2020 will be seen as a ‘lost year’ for automotive, with the sector under pandemic-enforced shutdown for much of the year and uncertainty over future trading conditions taking their toll. However, with the rollout of vaccines and clarity over our new relationship with the EU, we must make 2021 a year of recovery.

“With manufacturers bringing record numbers of electrified vehicles to market over the coming months, we will work with government to encourage drivers to make the switch, while promoting investment in our globally-renowned manufacturing base – recharging the market, industry and economy.” 

In 2020 demand fell across all segments bar specialist sports cars, which grew by 7%. The most popular class remained the ‘supermini’, retaining a 31.2% market share despite a 25.9% decline in registrations. Petrol and mild hybrid (MHEV) petrol cars declined by 32.9% but nonetheless made up 62.7% of registrations, while diesel and MHEV diesels, down 47.6%, comprised almost a fifth (19.8%) of the market.


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Content published by Professional Engineering does not necessarily represent the views of the Institution of Mechanical Engineers.

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