EV Myth: EV sales have slumped

May 23, 2024

Contrary to the perception of a slump in EV sales, recent data from the Society of Motor Manufacturers and Traders (SMMT) provides a different picture:

January 2024 saw the millionth battery electric car hit UK roads, marking a significant milestone.

In January, 20,935 EVs were registered, representing a notable increase of 21% year-on-year.

The market share for EVs also grew year-on-year to 14.7%, with a total of 1,001,677 EVs registered since 2002.

Fleet and business demand for EVs surged by 41.7% in January, indicating strong commercial interest.

While private sales of EVs declined by 25.1%, private sales of all fuel types fell by 15.8%. This drop in private car sales is not unique to EVs but reflects broader economic challenges such as a global recession, interest rate hikes, and declining disposable income and confidence.

The discrepancy between fleet and private new EV sales can be attributed to several factors:

Lack of subsidies or tax breaks for retail buyers.

The change of the 2030 cut-off sales date for combustion cars and vans to 2035.

A prevalence of anti-EV narratives in various media platforms, affecting consumer confidence.

Interestingly, the used EV market paints a different picture:

Sales of second-hand EVs nearly doubled in January, rising by 90.9% to a record 118,973 units.

Auto Trader attributes this surge in used EV sales to attractive prices and a softening in the supply of electric cars entering the market, which led to weakened prices in 2023 due to an excess of EVs at auctions.

Richard Walker, Auto Trader’s data and insight director, highlighted the current trend: “For the moment we’re seeing the stars align for second-hand EVs: greater affordability and rising prices at the pumps is helping make them a more viable alternative to their ICE counterparts.”