The Chief Executive of the Society of Motor Manufacturers & Traders (SMMT) has said that more used car buyers are opting for electric vehicles (EVs), which now represent one in every 42 used cars sold.
In his latest CEO update last week, Mike Hawes said:
Just as Britain’s athletes break records on the track, so motorists are setting them on the road with the latest SMMT figures this week showing a 24-month run of growth in demand for new cars. It means more of the latest, fuel efficient and zero emission vehicles are joining the fleet – delivering more choice than ever to second and third hand buyers, too, with the number of used transactions this year rising at the fastest rate since 2016. Records are also being set for used battery electric vehicle (BEV) uptake, now representing one in every 42 used cars sold.
Progress is happening thanks to industry – with significant product and plant investments, and a workforce that’s skilled at building this cutting-edge decarbonised technology – as well as UK consumers who are turning to electrified vehicles in increasing numbers. But accessibility is key and, while industry is doing its level best to deliver with competitive and attractive products, it’s concerning that the latest industry outlook has revised the UK’s anticipated BEV uptake down to 18.5% of the new car market in 2024, reduced from the 19.8% expected in April. With zero emission vehicles mandated to comprise at least 22% of each manufacturer’s sales this year, all stakeholders must act with haste.
Last week’s interest rate cut was already ‘priced in’ to the latest outlook so, given current market conditions, further cuts would be welcome to help reduce the costs of finance and make new – and green – car purchases a consideration for consumers. Similar concerns are felt in the light commercial vehicle (LCV) market where manufacturers are launching more new electric models, with 28 now available – up from 25 this time last year. But despite the competitive payloads and ranges that these models offer, new electric van uptake is down -7.0% in 2024 so far.
All stakeholders, not just automotive, must play their part to make decarbonisation possible. Achieving market transition at the pace demanded requires greater support for consumers and businesses. With the all-important new numberplate month of September beckoning, action on incentives and infrastructure is needed now.
