Sales for fully-electric cars increase 39% as fleet sales dominate

Sales of battery electric vehicles increased by almost two-fifths (39.1%) in June compared to the same month last year as fleets continue to power the new car market.

Latest Society of Motor Manufacturers and Traders (SMMT) registration figures show that 47,354 BEVs were registered last month, taking the total for the first six months of the year to 167,096 (itself a 34.6% increase compared to the same period last year).

A total of 191,316 new cars were registered in June, marking an uplift of 6.7% year-on-year.

Despite a positive performance, it remained behind pre-pandemic levels – 14.4% lower than in 2019.

Fleet and and business sales continue to drive the majority of new car registrations, driving more than 630,000 sales since the start of the year. Over the same period, a total of 1,042,219 cars have been sold.

As well as the significant increase in BEV registrations, PHEVs sales grew 28.8% to 21,382 units in June. The market for new hybrid electric vehicles (HEVs), meanwhile, fell 8.5% to 23,835 registrations.

Total electrified vehicle registrations (92,571) achieved a 48.5% market share. However, although BEVs accounted for a 21.6% market share, they remain significantly behind the 28% mandated for this year.

The SMMT warned a lack of governmental purchase and charging incentives, combined with fiscal disincentives such as the newly-applied VED expensive car supplement (ECS), are acting as a brake on BEV demand.

It added that amending the ECS to remove the majority of BEVs from its scope and cutting VAT on new BEVs and public charging would boost demand significantly.

Mike Hawes, chief executive of the SMMT, said: “A second consecutive month of growth for the new car market is good news, as is the positive performance of EVs.

“That EV growth, however, is still being driven by substantial industry support with manufacturers using every channel and unsustainable discounting to drive activity, yet it remains below mandated levels.

“As we have seen in other countries, government incentives can supercharge the market transition, without which the climate change ambitions we all share will be under threat.”

Petrol continued to be the most popular powertrain choice in June, with 88,029 models registered – a market share of 46%. Diesel cars accounted for 10,716 sales.