Car Sales Surge in UK, but Electric Vehicle Momentum Slows (Matt Cardy via Getty Images)
The automotive industry is experiencing a surge in new car sales, with UK new car sales rising by 2.5% in July. This marks the 24th consecutive month of growth, showcasing a positive trend in the market. However, amidst this growth, there is a concerning trend emerging – electric vehicle (EV) sales are starting to lose momentum.
According to the Society of Motor Manufacturers and Traders (SMMT), electric vehicle demand accounted for 42% of new cars registered in July. While this is a significant portion of the market, there are signs that EV sales are not growing as rapidly as anticipated. The SMMT now estimates that pure EVs will have an 18.5% share of the market in 2024, down from their previous forecast of nearly 20%.
One of the key concerns highlighted by the SMMT is the weaker demand for EVs from private buyers. Despite manufacturers offering “generous” discounts, there seems to be a lack of consumer interest in electric vehicles. This is a worrying trend, especially considering the UK’s climate change ambitions and manufacturers’ targets for EV sales.
In contrast, petrol cars continue to dominate the market, accounting for 52.1% of sales, despite a 5.9% year-on-year decline. Diesel volumes have also fallen significantly, making up just 5.9% of sales. The fleet sector, on the other hand, recorded a 13% increase in registrations, highlighting a strong demand from corporate buyers.
The SMMT has downgraded its overall forecast for new car registrations this year, reflecting the challenges faced by the industry. With the all-important new number plate month of September approaching, there is a call for action on incentives and infrastructure to support the transition to electric vehicles.
As the automotive industry navigates these challenges, it is clear that more needs to be done to accelerate the adoption of electric vehicles. With the right support and incentives in place, the industry can work towards achieving its climate change goals and ensuring a sustainable future for transportation.