New Car Registrations Surge but Electric Vehicle Market Stalls

New car registrations in February reached their highest level in over two decades, totalling more than 90,000 vehicles. This figure is the largest for the month of February since 2004. However, the market share of new electric vehicles has seen a concerning decline for the second consecutive month.

In February, 21,840 new electric cars were registered, representing a 2.8 per cent increase compared to the previous year. Despite this growth, the percentage of fully electric plug-in battery registrations fell to 24.2 per cent, down from 25.3 per cent a year earlier. This stagnation in the electric vehicle market has led manufacturers to urge the government to reassess the zero emission vehicle mandate, which imposes significant penalties on carmakers that do not meet the 33 per cent target.

The electric vehicle lobby attributes the slowing uptake to mixed governmental messaging, particularly concerning the forthcoming 3p per mile electric vehicle duty. A recent study by the AA and electrifying.com indicates that many potential car buyers doubt whether the running costs of electric vehicles will be cheaper than those of petrol models.

John Lewis, chief executive of chargepoint operator char.gy, expressed concern that the UK had set ambitious goals for electrification to instil confidence among manufacturers, infrastructure providers, and consumers. He emphasised that consistent supporting policies are essential to maintain momentum in electric vehicle adoption. Introducing uncertainty through new road pricing or increased public charging costs could hinder progress at a crucial time.

Among manufacturers, Jaecoo—a Chinese carmaker—has made a significant entry into the market, selling 6,800 vehicles and capturing nearly three per cent of the market share. BYD, another Chinese manufacturer, recorded 6,100 sales in the first two months of the year. Conversely, sales for Tesla—the leader in the electric vehicle sector—have plummeted by 40 per cent this year.

The overall rise in new car sales, which increased by seven per cent year-on-year, has been largely driven by a resurgence in private buyers. Retail sales to individual consumers rose by nearly 18 per cent, accounting for most of the volume increase during the month. Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, indicated that although electric car volumes are growing, their market share continues to fall well short of the government’s target.