The Society of Motor Manufacturers and Traders (SMMT) has published UK data showing that while sales of new electric vehicles are on the rise, private buyers are staying away.
The figures from the UK motor industry body suggest that things are moving in the right direction to potentially help hit government’s carbon-neutral target. Compared to the same period last year, diesel-engined vehicle sales have dropped by 21.9 percent, while petrol-powered vehicles are down 5.9 percent.
However, despite double-digit increases across the board, Hybrid Electric Vehicles (HEVs) enjoyed a far larger increase in share than Battery Electric Vehicles (BEVs), up year-on-year by 31.4 percent and 18.8 percent repectively. The former accounted for 21,446 vehicles, against 27,335 vehicles for the latter.
The trend mirrors that seen elsewhere in Europe, where HEVs were the star of the show, according to data from the European Automobile Manufacturers’ Association (ACEA).
Yet despite the falls in sales of traditional Internal Combustion Engine (ICE) vehicles, petrol-powered models still accounted for more than half of July’s market, according to the SMMT. The trend is clear, and the SMMT expects that market share to decline further in 2025, dropping below the 50 percent mark to 47.5 percent.
The SMMT also expects BEV, HEV, and PHEV (Plug-in Hybrid Electric Vehicles) sales to continue to grow and a near doubling of BEV Light Commercial Vehicle (LCV) sales between 2024 and 2025. However, the SMMT forecasts the proportion of BEV LCVs, at 44,000, to be only a small slice of the 362,000 LCVs it forecasts for 2025.
The UK government has set 2035 as the date when the sale of new cars with internal combustion engines – petrol, diesel, and, yes, hybrid – will be banned, although a second-hand market will keep the old things going for a good while after.
Felicity Latcham of OC&C Strategy Consultants, noted the bounce in sales compared to June and “a positive headline shift towards carbon neutrality with an 18.8 percent uplift in BEVS this month compared to the 7.4 percent uplift in June.”
“However the growth both overall, and in BEVs is underpinned by adoption in fleet, with private sales down 11 percent YoY.”
Latcham is correct; while Fleet sales grew 13 percent in July, Private sales dropped by 11.1 percent, a reflection of buyers deferring their purchases despite the rising costs of petrol and diesel in the UK. Latcham pointed to an OC&C report [PDF] that indicated the appetite for EVs of Private buyers was slowing.
No doubt cost and lack of charging infrastructure are central to some potential buyers’ decision-making. ®
