New EV sales continue to grow as petrol and diesel shrink
Registrations of new electric vehicles rose again in April, despite a wider market contraction.
Sales of new EVs were up 8.1% compared with April 2024, with 24,558 new cars registered. Sales of plug-in hybrids were the only other segment to improve – up 34%. Petrol sales were down 22% and diesel declined 26%, according to April figures from the Society of Motor Manufacturers and Traders.
While bucking the market trend, EVs’ 8.1% increase was significantly smaller than then 43% year-on-year growth seen in March.
April is traditionally a quieter month after the March plate change, but the slowing of EV demand may also partly be down to tax changes which came into force in April and hit EVs with vehicle excise duty for the first time. While first-year tax on EVs is only £10, subsequent years will cost £195 and any model costing more than £40,000 is also liable for the £425 per year Expensive Car Supplement, reducing the cost benefits of buying a new EV.
The SMMT speculated that knowledge of these changes may have pushed more transactions into March to beat the changes, resulting in a lessened demand in April.
Overall, electric car registrations accounted for 20.4% of all new car registrations in April. That is up from 19.4% in March but still some way short of the 28% required under the ZEV mandate. The SMMT forecasts that at the current rate of growth, EVs will take a 23.5% market share by the end of the year.
Mike Hawes, SMMT chief executive, commented: “April’s performance is disappointing but expected after March’s surge. Another month of growth for electric vehicle registrations is good news, however, even if demand remains well below ambition. Recent government adjustments to flexibilities and compliance within the ZEV Mandate are welcome and an important first step in relieving some of the pressure on the market and manufacturers.
“However, EV uptake is still being heavily and unsustainably subsidised by the industry which is why a compelling package of measures from government is essential if consumers are going to make the switch.”
