UK electric vehicle (EV) sales rose in March on firms' resurging demand for fleet cars, despite a drop in private car sales on the year earlier, data from the Society of Motor Manufacturers and Traders (SMMT) show.
Sales of hybrid EVs (HEVs), plug-in hybrid EVs (PHEVs) and battery EVs (BEVs) all rose last month (see table), although demand for cars across the board continues to be driven by firms' fleet sales — up by 29.6pc on the year — while consumer sales fell by 7.7pc.
But several market participants played down the results for the EV market.
"It's silly to keep focusing on fleets," Allye Energy chief executive Jonathan Carrier told Argus. "Of course they are driving the market, but let's look further out to the growing second-hand market. That's where mass adoption is really going to shape up."
Campaign group FairChange founder Quentin Wilson told Argus it was "remarkable" that overall BEV sales increased given a squeeze on disposable incomes and what he called a "torrent of disinformation from the media".
BEVs typically occupy the premium end of the passenger car market, which has been squeezed by consumer spending pressures. The average price of BEVs was £50,000 ($63,000) last year compared with the average price of all cars at £19,000-32,000, according to personal finance researcher NimbleFins.
Consumer demand for EVs has been weak despite carmakers' attempts to cut prices, looking to meet overall emissions targets, Auto Trader's commercial director, Ian Plummer, told Argus.
"More than three-quarters of new EVs are now advertised on our website with discounts," Plummer said.
BEV uptake continued to be driven by fleet sales to businesses, thanks to compelling tax incentives. But similar incentives could also be introduced for private buyers, according to SMMT chief executive Mike Hawes. Temporarily halving VAT on EV sales would save the average private buyer about £4,000 off the sale price and bring 270,000 more EVs on to the road over the next three years, Hawes said.
"We need to see more done to support car buyers make the switch in the near term," according to Ralph Palmer, EV and fleets officer at campaign group Transport & Environment. This includes "levelling up charging infrastructure" and clear messaging on the "longevity of batteries" and the availability of repair services available for BEVs.
Aggregate car sales edge up
Total private car sales in March slipped to 128,472 from 139,223, but fleet car sales jumped to 181,399 from 140,002 a year earlier.
This has lifted total new car registrations in March to 317,786 from 287,825 in March last year — the highest since 2019, although still well short of pre-pandemic sales (see graph). Year-to-date sales against the year earlier followed a similar pattern.
Meanwhile, sales of petrol cars in March rose by 9.2pc on the year — retaining a market share of more than 50pc (see table) — while diesel sales were near unchanged.
Chinese electric carmaker BYD also began to establish a presence in the UK market, with sales in March jumping to 759 from 34 units a year earlier. EV sales from China across the board look set to rise, according to Plummer, as Chinese firms' share of new car adverts on the online marketplace have "more than tripled since March 2021".
| March new car registrations | |||||
| 2024 | 2023 | % | Market share -24 | Market share -23 | |
| Diesel | 23,312 | 23,968 | -2.7 | 7.3 | 8.3 |
| Petrol | 177,019 | 162,046 | 9.2 | 55.7 | 56.3 |
| BEV | 48,388 | 46,626 | 3.8 | 15.2 | 16.2 |
| PHEV | 24,517 | 17,933 | 36.7 | 7.7 | 6.2 |
| HEV | 44,550 | 37,252 | 19.6 | 14.0 | 12.9 |
| — SMMT | |||||
| UK March new car sales | |||
| 2024 | 2023 | % | |
| Private | 128,472 | 139,223 | -7.7 |
| Fleet | 181,399 | 140,002 | 29.6 |
| Business | 7,915 | 8,600 | -8 |
| Total | 317,786 | 287,825 | 10.4 |
| — SMMT | |||
