ANOTHER bad performance for new car registrations saw the market down for the fourth month running in October despite the continued uptick in electrified vehicles – particularly PHEVs.
Sales fell 24.6% to 106,265 units compared to October last year, according to new figures from the Society of Motor Manufacturers and Traders (SMMT). The PHEV vehicle uptake remained positive in the month before COP26, with battery electric vehicles (BEVs) equalling their September market share of 15.2% with 16,155 units, while plug-in hybrid vehicles (PHEVs) grew to 7.9% or 8,382 units.
Plug-in vehicles now account for 16.6% of all new car registrations in 2021, which, when joined by a further 9.1% from hybrid electric vehicles means that 25.7%, or more than a quarter of the new car market, has been electrified year-to-date.
In fact, plug-in vehicle uptake rates have accelerated so rapidly that SMMT forecasts that more will join Britain’s roads in 2021 than during the whole of 2010 to 2019 combined. Businesses and consumers are expected to take up around 287,000 of the latest zero-emission capable cars by the end of the year.
Jon Lawes, Managing Director at Hitachi Capital Vehicle Solutions said that while the upward trajectory of EV registrations remains promising, the market continues to be hampered by ongoing new model shortages, reflected by the unparalleled surge in demand for used vehicles.
He added: “If we’re committed to maintaining this momentum and realise the targets being discussed at COP26, the Government needs to go much further to support the industry. “The ZEV mandate would be a step in the right direction, but significantly more public sector-led investment in EV infrastructure is paramount. We need policy clarity from Government, not soundbites.”
Meryem Brassington, Electrification Propositions Lead at Lex Autolease said: “The continued uptake of electric vehicles is clear evidence that momentum continues to shift away from petrol and diesel. As electric vehicles continue to increase their market share, sustained investment from policymakers to facilitate the journey towards an electric future will be critical.
“The government’s EV infrastructure and manufacturing commitments in the Net Zero Strategy are a step in the right direction, while innovation and the decarbonisation of road transport is needed to drive forward the transition to zero emission vehicles. All eyes will be on industry leaders at COP26 as we strive to clean up the UK’s roads ahead of the 2030 ICE ban deadline.”
Karen Johnson, Head of Retail and Wholesale at Barclays Corporate Banking, said that car dealers will be disappointed to see October’s registrations continue to decline versus 2020. “This run of poor figures is creating an overhang in the market, so dealers will hope they can meet some of the consumer demand that had been left unsatisfied over the weeks and months ahead. Unfortunately this demand still outstrips available supply, so forecourts across the country will be having to prioritise the delivery of their current order book as well as meeting the challenge of future purchases.
“COP26 has sustainability at the front of everyone’s minds at the moment, and prospective car buyers are clearly no exception. New registrations of ‘battery electric vehicles’ continue to perform well, and whilst comparative volumes may be small the percentage increases we are seeing are significant. This area will certainly be one to watch as we go into the new year.”
Lucy Simpson, head of EV enablement at Centrica Business Solutions, added: “As supply chain and labour shortages continue to hamper manufacturers, it’s encouraging to see the electric vehicle market remain buoyant, with battery vehicles now accounting for 18% of the market. The soaring uptake of plug-in vehicles is hard evidence that cleaner and greener EV technology is fast becoming the transport method of choice.
“However, we need to ensure all drivers can make the switch, requiring a significant investment in the UK’s charging infrastructure. The £1bn commitment to boost electric vehicle charging and production in the government’s Net Zero Strategy is a welcome step, but we need to see quicker action – the roll out of charge points must keep pace with the acceleration in EV registrations if we are going to achieve a greener future for transport.”
