New electric car sales buck market trend to keep growing

Registrations of new electric cars rose again in October, despite an overall slump in the new car market.

Pure EVs were the only powertrain to see an increase in sales – rising 24.5% year-on-year even as the market as a whole dropped by 6% compared. The decline in the market was driven by double-digit drops in both petrol and diesel, although hybrids and plug-in hybrids also suffered marginal reductions.

In total 29,802 EVs were registered in October 2024, representing 20.7% of the month’s new car market. However, the Society of Motor Manufacturers and Traders (SMMT) warned that across the whole year, EVs were still predicted to account for just 18.1% of all new registrations – some way short of the 22% required under the ZEV mandate.

The SMMT credited the continued growth of the EV segment to the burgeoning choice of models, falling costs and manufacturer incentives. However, in the wake of a Budget which did little to encourage private buyers into EVs, it warned that current measures to boost uptake are not sustainable.

According to the SMMT, UK buyers now have more than 125 different BEV models to choose from – an increase of 38% since January 2024 – and more affordable models. While average new EV prices remain higher than an ICE equivalent, the industry body revealed that around one in five BEV models now has a lower purchase price than the average petrol or diesel car, especially for buyers able to take advantage of schemes such as salary sacrifice.

However, the SMMT said that much of this was down to drastic manufacturer discounting. It warned that rapid transition would not happen without ‘bold and compelling’ incentives backed by government help, such as a temporary cut in VAT on new EVs.

Mike Hawes, SMMT chief executive, said: “Massive manufacturer investment in model choice and market support is helping make the UK the second largest EV market in Europe. That transition, however, must not perversely slow down the reduction of carbon emissions from road transport.

“Fleet renewal across the market remains the quickest way to decarbonise, so diminishing overall uptake is not good news for the economy, for investment or for the environment. EVs already work for many people and businesses, but to shift the entire market at the pace demanded requires significant intervention on incentives, infrastructure and regulation.”