Electric cars make up 42% of new car sales in July

New electric car registrations outstripped the rest of the new car market last month as demand for EVs jumped significantly.

Electrified vehicles accounted for four in ten (42%) of all new cars registered in July, according to the Society of Motor Manufacturers and Traders (SMMT).

Last month represented the 24th consecutive month of growth for the new car market and revealed surging demand for electrified cars of all types and a decline in demand for traditionally fuelled vehicles.

Battery electric car registrations were up 18.8% – at 27,335 in July, meaning BEVs made up 18.5% of the new car market. In contrast, diesel registrations continued to spiral, dropping 22%, and petrol also fell after months of gradual growth – down 5.9%.

The latest increase in demand is more than double the rate of growth in June but the SMMT has warned that the transition still needs to accelerate ‘significantly’ to meet the ZEV mandate. That requires 22% of all brands’ new sales to be fully zero emissions by the end of the year.

The SMMT recently revised its market forecast downwards for all fuels, and predicted that BEVs will account for 18.5% by the year end, down from the 19.8% forecast in April. SMMT chief executive Mike Hawes said that the continued decline in private demand was an ‘overriding’ concern that needed to be addressed through incentives and development of infrastructure.

July’s market growth has been driven entirely by fleet registrations, with private retail sales down 11% in July and 12% year-on-year.

Mike Hawes commented: “More people than ever are buying and driving EVs but we still need the pace of change to quicken, else the UK’s climate change ambitions are threatened and manufacturers’ ability to hit regulated EV targets are at risk.

“Achieving market transition at the pace demanded requires greater support for consumers and, with the all-important new numberplate month of September beckoning, action on incentives and infrastructure is needed now.

Sue Robinson, chief executive of the National Franchised Dealers Association said the continued growth of the new EV market was encouraging but echoed the SMMT’s calls.

She said: “Private demand continues to trail behind fleet, highlighting the urgent need to restimulate the private electric market and an important consideration for the new government.

“It is encouraging to witness another month of continuous growth in the electric vehicle market. However, the overall market share of electric vehicles, now at 16.8% [year-to-date], still falls short of the 22% required by the Zero-Emission Vehicle Mandate. This is an important consideration for the new government, particularly as they aim to reinstate the 2030 phase-out date of ICE vehicles.”