New car sales hit 30-year low – but EVs now second only to petrol cars

New data from the Society of Motor Manufacturers and Traders (SMMT), has revealed that due to the ongoing supply chain shortages within the industry, the new car market in the UK has had its worse year in more than three decades.

Registrations for new vehicles dropped 2% last year when compared to 2021 – with 1.61 million units sold. This is the lowest levels since 1992.

However, electric vehicles (EVs) are now second only to petrol cars for the first time – overtaking diesel powered vehicles.

EVs now account for 16.6% of the UK’s new vehicles (battery electric vehicles).

Plug in hybrids (6.3%) and hybrid electric vehicles (11.6) also highlight the growing trend of UK drivers making the switch to EVs.

All plug-in vehicles accounted for 22.9% of new registrations in 2022 – a record high, although a smaller increase in overall market share than recorded in previous years.

Hybrid electric vehicles also saw an increase, with a rise to an 11.6% market share for the year.

As a result, average new car CO2 fell -6.9% to 111.4g/km – also the lowest total recorded in history.

According to SMMT, chargepoint provision remains a barrier to EV uptake.

The government’s EV Infrastructure Strategy forecast that the UK would require between 300,000 and 720,000 chargepoints by 2030.

However, to meet this demand, the country would require more than 100 new chargers to be installed every single day. Worryingly, the current rate is around 23 per day.

Mike Hawes, SMMT Chief Executive, said: “The automotive market remains adrift of its pre-pandemic performance but could well buck wider economic trends by delivering significant growth in 2023.

“To secure that growth – which is increasingly zero emission growth – government must help all drivers go electric and compel others to invest more rapidly in nationwide charging infrastructure. Manufacturers’ innovation and commitment have helped EVs become the second most popular car type.

“However, for a nation aiming for electric mobility leadership, that must be matched with policies and investment that remove consumer uncertainty over switching, not least over where drivers can charge their vehicles.”

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Following the announcement from the Society of Motor Manufacturers and Traders, RAC electric vehicle spokesman Simon Williams said: “December was a landmark month as for the first time, electric vehicle registrations outperformed sales of new petrol cars.

“Rather than being seen as a niche market, EVs are now on the verge of going mainstream with one-in-six of all new cars in 2022 being zero-tailpipe emissions – making them more popular than diesels.

“Take-up among fleets is likely to be the primary driver of this growth due to EVs having excellent benefit-in-kind tax rates.

“This is also good news for the second-hand EV market in the coming years as more EVs will appear there as leases expire in three years’ time.

“However, we remain concerned that rapid and ultra-rapid charging infrastructure is not keeping up with demand.

“Recent images of queues over the festive period at public charging stations could come back to haunt ministers if this ends up stifling demand because of perceived problems with the network.

“Slashing VAT on public chargepoints from 20% to 5% to match the amount levied on domestic electricity would also give the network a shot in the arm in the face of rising electricity costs and would encourage operators to install more.”

Will you be making the switch to electric in 2023? What more should be done to encourage people to replace their fuel powered vehicles for EVs? Leave your comments below.