New Car Registrations in Britain Rise in May, BEV Market Share Increases to 17.6%
Are Electric Vehicles the Future of the Automotive Industry?
The latest industry data shows that registrations of battery electric vehicles (BEV) in Britain have claimed a 17.6% market share, up from 16.9% a year earlier. This is a positive sign for the transition towards zero-emission vehicles, but it falls short of the required 22% as set out by the government mandate. Despite this, new car registrations in May have seen a rise, with fleet vehicle demand driving market growth.
The Society of Motor Manufacturers and Traders (SMMT) reported that new car registrations were up 1.7% from a year ago, with 147,678 units hitting the road. This is the best May market performance since 2021, indicating a positive trend in the industry. However, private consumer purchases have seen a drop, even with manufacturers offering discounts amid a cost-of-living crisis.
Fleets and businesses have continued to fuel market growth, outweighing the decline in private retail uptake. The availability of over 100 EV models and compelling offers from manufacturers show a dedication to driving change in the industry. However, meeting targets will require more support, according to SMMT.
Incentives such as temporarily halving value-added tax on BEVs have been suggested to encourage more buyers, as investment in the sector continues to grow. Jamie Hamilton, an automotive partner and head of electric vehicles at Deloitte, highlighted the need for more publicly available charging stations to make electric vehicles more appealing to consumers.
As the automotive industry moves towards a more sustainable future, the rise in BEV registrations and market performance in May indicate a positive shift. With the right support and incentives in place, electric vehicles could very well be the future of the automotive industry. Stay tuned for more updates on the latest insights and analysis in the passenger vehicle sector. Join the community of industry professionals and subscribe to our newsletter for the latest news. Download the ETAuto App for real-time updates and save your favorite articles. Let’s drive towards a greener future together!