Car registration figures reveal EV reluctance amongst private buyers

Information published by the Society of Motor Manufacturers and Traders (SMMT) shows the UK new car market expanded 21.0 per cent year-on-year in September, with 272,610 registrations during the month. This 14th consecutive month of growth was also the second busiest of the year after March, with the new number plate delivering its traditional market surge despite a challenging economic backdrop.

Large fleets continued to drive growth, with registrations up 40.8 per cent, to 143,256 units and a market share of 52.5 per cent. This represents a market rebalancing after constrained supply in 2022 restricted deliveries to business and fleet customers.

Private consumer demand increased 5.8 per cent, to 122,944 units. As a result, the industry enjoyed its best September since 2020, although registrations remain 20.6 per cent below those of pre-pandemic September 2019.

Mixed results for EV registrations

Electrified vehicle uptake continued to grow in September 2023, with plug-in hybrid vehicles (PHEVs) up 50.9 per cent to take a 6.8 per cent market share, and hybrid electric vehicles (HEVs) up 30.7 per cent to account for 13.9 per cent of all registrations. Battery electric vehicles (BEVs), meanwhile, recorded their 41st consecutive month of growth – with 45,323 drivers making the switch, an 18.9 per cent uplift. Given this growth was less than the overall recorded by the market, BEV market share slipped back from 16.9 per cent a year ago to 16.6 per cent.

Fleet purchases were the sole driving factor behind BEV volume increases, and these rose by 50.6 per cent. Private BEV registrations fell 14.3 per cent, with less than one in ten private new car buyers opting for electric during the month.

A side order of carrots, please

“A bumper September means the new car market remains strong despite economic challenges,” states Mike Hawes, SMMT chief executive. “However, with tougher EV targets for manufacturers coming into force next year, we need to accelerate the transition, encouraging all motorists to make the switch. This means adding carrots to the stick – creating private purchase incentives aligned with business benefits, equalising on-street charging VAT with off-street domestic rates and mandating chargepoint rollout in line with how electric vehicle sales are now to be dictated. The forthcoming Autumn Statement is the perfect opportunity to create the conditions that will deliver the zero emission mobility essential to our shared net zero ambition.”