The number of new cars registered in the UK has jumped by nearly 18% but electric vehicle demand is flatlining, prompting the industry to call for a VAT cut to stimulate sales.
Annual figures released by the Society of Motor Manufacturers and Traders (SMMT) on Friday show 1.9m new cars were registered last year, well up on the previous year’s figure of 1.6m and the highest level since the 2.3m registrations of 2019.
The increase is a boost for the automotive industry after the pandemic led to supply chain problems and a shortage of vital computer chips that slowed production.
Across the year, 315,000 new battery electric vehicles were sold. That was 50,000 more than 2022, but the number being bought as a share of total registrations failed to grow as expected. They represented just 16.5% of the total, slightly down on last year’s 16.6%.
This is the best summary I could come up with:
The number of new cars registered in the UK has jumped by nearly 18% but electric vehicle demand is flatlining, prompting the industry to call for a VAT cut to stimulate sales.
The increase is a boost for the automotive industry after the pandemic led to supply chain problems and a shortage of vital computer chips that slowed production.
After the latest figures showing the sector is still well short of that target and that the switchover is stalling, the SMMT is calling for the government to halve VAT on all new ZEV purchases across the next three years.
It has estimated the plan, which equates to an average of £4,000 per purchase, would save consumers a total of £7.7bn over the period and would put 250,000 extra ZEVs on the road by 2026.
Mike Hawes, the SMMT chief executive, said: “Government has challenged the UK automotive sector with the world’s boldest transition timeline and is investing to ensure we are a major maker of electric vehicles.
Superminis – small hatchbacks such as the Ford Fiesta and Vauxhall Corsa – continued to be the country’s most popular category of car, making up nearly 30% of all new vehicles.
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