EV sales hit milestone but grant cuts stunt growth

Sales of battery electric vehicles (BEVs) slowed last month, with cuts to the plug-in car grant being blamed.

However, the latest figures for car registrations also revealed a milestone, with more than 500,000 ultra low-emission vehicles now being driven on UK roads.

Statistics published by the Society of Motor Manufacturers and Traders (SMMT) today (5 May) show just over 9,000 BEVs sold in April – representing 6.5 per cent of total registrations for the month. The SMMT noted the “unusual” situation that plug-in hybrids had a higher market share, at 6.8 per cent. BEV’s share had been running at 7.5 per cent in the first quarter of 2021.

The trade body blamed the decline on changes to the plug-in car grant, which was cut by £500 (to £2,500) in March and abolished for models costing more than £35,000.

It now estimates BEVs will account for 8.9 per cent of all registrations by year-end – down from the 9.3 per cent forecast in January. With PHEVs anticipated to take a 6.3 per cent market share, plug-in vehicles should comprise 15.2 per cent of all cars registered in 2021.

Responding to the figures, Centrica Business Solutions’ head of electric vehicle (EV) enablement Lucy Simpson said: “For the momentum in the EV rollout to continue, it’s essential that the government takes action to address common barriers to adoption such as access to charging infrastructure.  Our recent research into business attitudes towards EVs revealed that range anxiety was the chief concern for a third of UK firms. So, investment in a network of public charging points that are fairly distributed across the UK, not just concentrated in bigger cities, will be crucial to the UK’s ability to achieve its Road to Zero targets.

“If we are to ‘build back better’ from the impact of Covid-19, financial incentives that help promote the uptake of EVs among both businesses and individuals must also remain a priority for policymakers.”

Centrica’s research, conducted among 200 UK businesses, found that despite the barriers, firms are increasingly keen to invest in EVs, with £15.8 billion of expenditure expected in the next 12 months, compared to the £10.5 billion spent in the year to March 2021.

Meeting corporate sustainability targets was seen as the biggest driving factor behind increased EV adoption, followed by reducing operational disruption caused by low and zero-emission zones and the attraction of the lower maintenance and whole-life costs.

Almost half of the businesses polled (46 per cent) plan to install charging points over the next 12 months, although 37 per cent have already fitted this infrastructure. The research also revealed that 30 per cent of firms have already invested in on-site technology capable of generating the energy to charge their EV fleet, while 48 per cent plan to do this in the future.