Britain’s millionth battery electrical automobile (BEV) reached the highway in January 2024, whereas the brand new automobile market grew 8.2% for the month, based on the newest figures from the Society of Motor Producers and Merchants (SMMT).
The primary month of the 12 months noticed 142,876 new automobiles registered, an uplift of 10,882 items on January 2023, the perfect efficiency for the month since 2020 and the 18th consecutive month of progress. The rise was pushed totally 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 automobiles registered, up from simply over half (52.7%) final 12 months.
The market additionally – narrowly – reached its anticipated milestone of 1,000,000 BEV registrations since information started. Some 20,935 BEVs have been registered in January, an increase of 21.0% 12 months on 12 months, 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. BEV market share for January additionally grew 12 months on 12 months to 14.7%, though that is beneath the full 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 more likely to proceed as producers modify product allocation following the last-minute decision over UK-EU guidelines of origin, which had threatened to apply tariffs to EVs, limiting affordability. Nevertheless, whereas fleet and enterprise demand for BEVs grew by 41.7% in January, registrations by non-public patrons fell by -25.1% – an ongoing pattern that can undermine Britain’s means to ship internet zero.
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 vital client incentives. But it is more and more clear that personal patrons want extra help to modify. Forward of subsequent month’s Funds, business is asking for authorities to help customers by briefly halving VAT on new BEV purchases. Such a step would value the Treasury a median of simply £1,125 per automobile, which is lower than the price of the earlier Plug-in Automotive Grant and would put greater than 1 / 4 of 1,000,000 electrical – reasonably than petrol or diesel – automobiles on the highway by the top of 2026, on prime of these already anticipated. Not solely would this lower CO2 by greater than 5 million tonnes throughout that point, it could imply that the following million EVs could possibly be delivered in simply two years.
Briefly lowering VAT on EVs would partly mirror the tax exemption already provided to customers on different carbon discount applied sciences reminiscent of warmth pumps. Supporting the EV client at the moment would additionally guarantee wider advantages reminiscent of growing 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 Govt, stated, “It’s taken simply over 20 years to succeed in our million EV milestone – however with the proper insurance policies, we will double down on that success in simply one other two. Market progress is presently depending on companies and fleets. Authorities should subsequently use the upcoming Funds to help non-public EV patrons, briefly halving VAT to chop carbon, drive financial progress and assist everybody make the swap. Producers have been requested to produce the automobiles, we now ask authorities to assist customers purchase the automobiles on which internet zero relies upon.”
The newest 2024 outlook for the brand new automobile market estimates a complete total quantity of 1.974 million items, which is a 4,000 unit enhance on the October estimate, however with the BEV forecast lowered to a market share of 21.0% over the 12 months, in contrast with the 22.3% anticipated in October and the 23.3% anticipated a 12 months in the past. Whereas myriad components reminiscent of excessive vitality costs, inflation and rates of interest, charging nervousness and blended messaging from authorities have restricted demand, 100,000 extra BEVs will nonetheless attain the highway in 2024 in contrast with final 12 months, totalling some 414,000 items – a couple of in 5 new automobiles. This quantity would enhance even additional if a VAT discount on EVs was launched.
Feb 5, 2024