News

UK New Car Sales Get A Boost From EV Discounts, But Challenges Remain

elecrtic vehicle

UK new car sales saw a modest boost in August, driven largely by discounts on battery electric vehicles (BEVs), according to the Society of Motor Manufacturers and Traders (SMMT). New private car registrations edged up by 0.1%, with around 32,100 cars sold.

However, total sales, including fleet and business purchases, were down 1.2% year-on-year, with approximately 84,600 vehicles sold in total.

The standout figure was the surge in demand for battery electric cars, which rose by 10.8% as carmakers offered significant discounts throughout the spring and summer. This, combined with the launch of several new models, has helped boost the market share for BEVs, which rose to 17.2% last month. The SMMT expects this to climb further, predicting a 2024 market share of 18.5%, with around 364,000 BEV registrations anticipated by the year’s end.

Discounts Drive EV Surge

The increased demand for electric vehicles (EVs) comes as manufacturers introduce a range of discounts and new models aimed at making EVs more accessible. The Citroen e-C3, priced at £22,000, and the Fiat 500e, just under £25,000, are among the most affordable options. Several models are now priced below £20,000, with the Citroen Ami—a quadricycle—being the cheapest at £8,000. The Dacia Spring, priced at £15,000, is the UK’s least expensive “proper EV,” according to AutoCar.

Despite the growing choice and affordability, SMMT chief executive Mike Hawes emphasized that encouraging a mass market shift to EVs remains a challenge. “Urgent action must be taken to help buyers overcome affordability issues and concerns about chargepoint provision,” Hawes said.

Barometer for Market Demand

While the growth in EV sales is positive, the SMMT warned that August is traditionally a low-volume month, with sales subject to distortions ahead of the September number plate change. The upcoming introduction of the new 74 plate, coupled with a range of new offers and models, will be a clearer indicator of overall market demand. “September will be a true barometer for market demand,” Hawes noted.

Despite the promising rise in BEV market share, the SMMT acknowledged that it is still falling short of the government’s zero-emission vehicle mandate, which calls for a 22% share of new car sales by the end of the year.

Ford Puma Leads Sales in 2024

In terms of overall car sales, the best-selling model in the UK this year remains the Ford Puma, followed by the Kia Sportage and the Tesla Model 3 in August, indicating strong competition between traditional and electric models.

As the UK continues its transition toward electric vehicles, the automotive industry faces the dual challenge of scaling up EV sales to meet government targets while addressing buyer concerns over affordability and infrastructure. The next few months, particularly September, will provide clearer insights into the pace of the UK’s EV transition and the broader car market.

News Team
Related News
Related sized article featured image

The TUC says young people are paying the price of the Conservative Party’s ‘toxic economic legacy’.

Alan Jones
Related sized article featured image

It is the latest major business to caution that workers and customers could face an impact from the rise in business taxes.

Henry Saker-Clark