Year-to-date the new car market is up 3.1% and new battery-electric vehicles (BEV) registrations are up 35.2% to push market share to 20.7%, the Society of Motor Manufacturers and Traders (SMMT) has announced.
In April, registrations of vehicles with a plug rose: plug-in hybrids (PHEV) were up 34.1% and BEVs increased 8.1% to 24,558 units, taking more than a fifth (20.4%) of the market. There are now more than 130 BEV models available, and the powertrain is the second most popular after petrol.
The SMMT said that while government’s amendments to the ZEV Mandate requirements were “welcome” it added that “the targets remain incredibly challenging and more must be done to stimulate demand”. Current BEV demand is around 21%, but the target is 28% for 2025.
Overall, the UK’s new car market fell -10.4% in April, with 120,331 units registered, which was the sixth fall in the last seven months, with 13,943 fewer cars registered in the month compared with the year before and 25.3% behind the pre-pandemic April 2019 levels.
In what is traditionally a quieter month following the March plate change, volumes were also impacted by the late timing of Easter, resulting in fewer working days, the SMMT said.
In addition, the implementation of VED changes affecting all new cars, including the Expensive Car Supplement which became applicable to many new EVs from 1 April, pushed transactions into March as shrewd buyers got ahead of the tax increases.
Registrations fell across all sales types, with private, fleet and business demand down -7.9%, -11.9% and -10.9% respectively. Continuing market trends, fleet buyers drove activity, responsible for six in 10 registrations.
The SMMT called for halving VAT on new EV purchases, scrapping or amending the VED Expensive Car Supplement, and equalising VAT on public charging as methods to boost overall demand.
The news comes as the latest market outlook revises up full year 2025 new car registrations to 1.964 million units.
Mike Hawes, SMMT Chief Executive, said:
“April’s performance is disappointing but expected after March’s surge. Another month of growth for electric vehicle registrations is good news, however, even if demand remains well below ambition.
“Recent government adjustments to flexibilities and compliance within the ZEV Mandate are welcome and an important first step in relieving some of the pressure on the market and manufacturers.
“However, EV uptake is still being heavily and unsustainably subsidised by the industry which is why a compelling package of measures from government is essential if consumers are going to make the switch.”
Reacting to the data, Susan Wells, Director of EV & Solar at Hive, said:
“Electric vehicle uptake continues to climb at record levels, as more drivers are looking to make the switch to more sustainable modes of transport.
“To facilitate this demand, it’s encouraging to see local councils accelerate the rollout of public charging points. The continued increase in charge point rollout is positive; however, it must be maintained, as drivers need the confidence to charge conveniently, both at home and in public spaces, to make the EV dream a reality.
“Affordability still remains one of the biggest barriers to EV uptake and policymakers must ensure they are taking every step to encourage more drivers to make the transition. This includes additional funding to support the rapid expansion of the UK’s charging network and reducing VAT on public charging costs.”
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