Britain’s millionth battery electrical automotive (BEV) reached the highway in January 2024, whereas the brand new automotive market grew 8.2% for the month, in response to the newest figures from the Society of Motor Producers and Merchants (SMMT).

The primary month of the yr noticed 142,876 new vehicles registered, an uplift of 10,882 models on January 2023, one of the best efficiency for the month since 2020 and the 18th consecutive month of progress. The rise was pushed solely by the fleet market, which rose by 29.9%, whereas non-public retail uptake fell -15.8%. Fleets accounted for greater than six in 10 (63.2%) new vehicles registered, up from simply over half (52.7%) final yr.

The market additionally – narrowly – reached its anticipated milestone of one million BEV registrations since information started. Some 20,935 BEVs have been registered in January, an increase of 21.0% yr on yr, taking the general complete since 2002 to 1,001,677 – testomony to the dedication of producers to ship ever-increasing numbers of zero emission fashions.¹ BEV market share for January additionally grew yr on yr to 14.7%, though that is under the complete 2023 efficiency of 16.5%. Plug-in hybrids (PHEVs) recorded quantity progress of 31.1% to take 8.4% of the market, whereas hybrid (HEV) volumes fell -1.2% with a 13.1% share.

Volatility in BEV provide has been anticipated and is prone to proceed as producers modify product allocation following the last-minute decision over UK-EU guidelines of origin, which had threatened to use tariffs to EVs, proscribing affordability. Nonetheless, whereas fleet and enterprise demand for BEVs grew by 41.7% in January, registrations by non-public consumers fell by -25.1% – an ongoing development that may undermine Britain’s means to ship internet zero.²

The UK is now the one main market to mix a 2035 finish of sale date with a mandated zero emission car market share, however with none important shopper incentives. But it’s more and more clear that non-public consumers want extra assist to modify. Forward of subsequent month’s Price range, business is looking for presidency to assist shoppers by quickly halving VAT on new BEV purchases. Such a step would price the Treasury a median of simply £1,125 per automotive, which is lower than the price of the earlier Plug-in Automotive Grant and would put greater than 1 / 4 of one million electrical – somewhat than petrol or diesel – vehicles on the highway by the tip of 2026, on prime of these already anticipated. Not solely would this reduce CO2 by greater than 5 million tonnes throughout that point³, it will imply that the subsequent million EVs could possibly be delivered in simply two years.

Quickly lowering VAT on EVs would partly mirror the tax exemption already provided to shoppers on different carbon discount applied sciences similar to warmth pumps. Supporting the EV shopper in the present day would additionally guarantee wider advantages similar to rising the provision of used EVs, enlarging the general market to make it extra enticing for charging and manufacturing funding, and slashing Britain’s carbon footprint.

Mike Hawes, SMMT Chief Government, stated,

It’s taken simply over 20 years to succeed in our million EV milestone – however with the precise insurance policies, we will double down on that success in simply one other two. Market progress is at present depending on companies and fleets. Authorities should due to this fact use the upcoming Price range to assist non-public EV consumers, quickly halving VAT to chop carbon, drive financial progress and assist everybody make the change. Producers have been requested to provide the automobiles, we now ask authorities to assist shoppers purchase the automobiles on which internet zero relies upon.

The most recent 2024 outlook for the brand new automotive market estimates a complete general quantity of 1.974 million models, which is a 4,000 unit improve on the October estimate, however with the BEV forecast decreased to a market share of 21.0% over the yr, in contrast with the 22.3% anticipated in October and the 23.3% anticipated a yr in the past. Whereas myriad elements similar to excessive vitality costs, inflation and rates of interest, charging anxiousness and blended messaging from authorities have restricted demand, 100,000 extra BEVs will nonetheless attain the highway in 2024 in contrast with final yr, totalling some 414,000 models – a couple of in 5 new vehicles. This quantity would improve even additional if a VAT discount on EVs was launched.

SOURCE: SMMT