New car registrations in the UK rose by 8.2 per cent in January 2024, driven entirely by fleet sales, as private buyers shun EVs.
But hidden in the steady increase in registrations is a shift in the market, with private buyers feeling the pinch and buying fewer cars and fleet sales dominating the market with a 63.2 per cent share.
Not only are fleet sales dominating the market, but they’re entirely responsible for the rise in registration of electric cars, with fleet sales of EVs rising by 41.7% whilst electric car registrations by private buyers fell by 25.1%.
Away from the BEV registrations – which, incidentally, passed the million market (after 22 years) – petrol car registrations rose by 7.4 per cent and PHEVs by 31.1%, whilst registrations of hybrids fell by 1.2% and diesels by 10.1%.
If there’s any chance of us all buying BEVS by 2035 (there probably isn’t), the SMMT wants the government to halve VAT on EVs which, they say, will cost the treasury £1,125 per car.
Mike Hawes, SMMT boss, said:
It’s taken just over 20 years to reach our million EV milestone – but with the right policies, we can double down on that success in just another two. Market growth is currently dependent on businesses and fleets. Government must therefore use the upcoming Budget to support private EV buyers, temporarily halving VAT to cut carbon, drive economic growth and help everyone make the switch. Manufacturers have been asked to supply the vehicles, we now ask government to help consumers buy the vehicles on which net zero depends.
Trevor H says
A lot of people obtain cars via leasing, in which case the car will be registered to the leasing company not the individual. Judging by the area around me there are lots of new EVs appearing everyday.
Peter says
Most private buyers buy secondhand, so in a few years time there will be a shortage of ICE vehicles, so the choice will be EV or keep your existing ICE car. The government doesn’t have to do anything in reality, market forces will do the job for them