June 29, 2022

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UK car buyers bought more electric cars in March than in whole of 2019

2 min read

British drivers bought more electric cars in March alone than in the whole of 2019 even as the broader market slumped, according to figures that underline the accelerating pace of the UK’s transition away from internal combustion engines.

There were 39,315 new battery electric vehicle registrations during the month, according to the Society of Motor Manufacturers and Traders (SMMT), a lobby group. In 2019 there were 37,850 electric sales.

Evidence of soaring demand for battery electric cars – which will become the most popular fuel type as soon as 2025 according to some analysts – has provided a bright spot for the car industry at a time when it has struggled for more than a year with computer chip supply bottlenecks.

Across electric and fossil fuel cars in total, the number of sales in the UK in March was the lowest for the month in 24 years.

March is an important month for the UK car industry, when buyers queue up for the latest number plates – a status symbol that can also help sustain secondhand values for a few months longer.

The slump in new car registrations, down 14% compared with March 2021, follows two months of year-on-year sales increases. The industry is concerned that it has missed a period of strong demand – buoyed up by household savings during pandemic lockdowns – and will be under pressure as household finances are squeezed by rising prices across the economy.

Jamie Hamilton, the automotive director and head of electric vehicles at the consultancy Deloitte, said: “The sector now faces new economic challenges; most notably with high levels of inflation and a squeeze on the cost of living. Combined, these factors have contributed to a sharp decline in consumer and economic confidence, dampening any underlying pent-up demand for new cars.”

It comes as the cost of petrol and diesel continues to soar to record levels in the wake of Russia’s invasion of Ukraine. Diesel prices in particular have soared, with a litre reaching a record…

Business Matters

2022-04-05 19:16:00

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