SMMT: EVs energise new car market but chargepoint rollout must accelerate

The UK new automotive market recorded a 3rd month of progress in October, with registrations rising by greater than 1 / 4 (26.4%) to 134,344 models, in response to the most recent figures from the Society of Motor Producers and Merchants (SMMT). Fulfilment of robust order books helped ship the bounce-back, though the rise follows a very disappointing October 2021 when deliveries fell by -24.6%.¹ Within the yr to this point, the market is down -5.6% on the identical interval in 2021, however nonetheless a 3rd beneath pre-Covid ranges.²

Progress in October was pushed primarily by giant fleet registrations, which grew 47.4% to 67,911 models, whereas these by non-public patrons rose 7.4% to 62,714. Smaller companies recorded a 108.6% improve though, at 3,719 models, it is a small section of the market.

Zero emission succesful automotive deliveries continued to develop in quantity, with battery electrical automobile (BEV) registrations rising by 23.4% to 19,933 and plug-in hybrids (PHEVs) by 6.2% to eight,899. Nevertheless, BEV uptake grew by lower than the general marketplace for the primary time for the reason that pandemic, that means October is the primary month to see BEV market share fall yr on yr since Might 2021, primarily attributable to provide challenges.

Deliveries of hybrid electrical autos (HEVs), in the meantime, rocketed 81.7% to account for a couple of in 10 new automobiles, as provide was prioritised for a raft of well-liked new fashions. General, electrified autos accounted for one in three registrations, whereas greater than a fifth (21.5%) got here with a plug.

Ongoing provide chain shortages, surging inflation and a rising value of residing disaster have led to a -2.2% downward revision of the market outlook for the yr, with 1.566 million registrations now anticipated. This places 2022 on target to be the market’s hardest yr since 1982.³ Extra positively, demand for electrical autos is anticipated to end in a plug-in market share of 21.9%. General market restoration is anticipated to proceed by way of 2023, with an outlook of 1.808 million models and plug-ins accounting for 26.7% of registrations subsequent yr.

Such progress underlines the significance of accelerating public chargepoint provision. At the beginning of October 2022 the UK had 34,637 public commonplace, fast and ultra-rapid electrical automobile charging gadgets, with 1,239 new fast chargers and 5,023 new commonplace chargers put in throughout the first 9 months of the yr. With 249,575 new plug-in registrations throughout the identical interval, only one new commonplace public charger has been put in for each 50 new plug-in EV registrations. At this fee, it’s unlikely that authorities’s ambition for 300,000 public chargers by 2030 will likely be met.⁴

Mike Hawes, SMMT Chief Govt, mentioned,

A robust October is massively welcome, albeit as compared with a weak 2021, however it’s nonetheless not sufficient to offset the injury accomplished by the pandemic and subsequent provide shortages. Subsequent yr’s outlook reveals restoration is feasible and EV progress seems set to proceed however, to attain our shared internet zero targets, that progress should speed up and shoppers given each purpose to speculate. This implies giving them the financial stability and confidence to make the swap, secure within the information they are going to be capable to cost – and cost affordably – when wanted. The fashions are there, with extra nonetheless to return; so should the general public chargepoints.

With stretched infrastructure and the price of residing disaster each having the potential to undermine future uptake, authorities’s Autumn Assertion, set for 17 November, supplies a chance to stimulate demand and ship each financial progress and internet zero progress. Additional measures to mitigate power prices in the long term for shoppers and companies would give larger confidence. Now isn’t the time to lift motorists’ prices, which might seemingly stoke inflation and injury broader authorities revenues from new automotive gross sales. An extended-term fiscal dedication to zero emission motoring would do a lot to stimulate funding and demand. EV drivers’ high complaints are, invariably, value and charging nervousness so lowering VAT on public charging to deliver it into line with house charging would stage the enjoying subject for drivers unable to put in a house chargepoint.