UK new car sales 2023: slow EV uptake by private buyers sparks industry concern

The UK car industry calls for a VAT cut on public charging, but survey data suggests driver resistance to EVs may be more ingrained 

UK sales of new battery-electric cars (BEVs) were up 39.4 per cent in June, but the growth in electric car purchases was driven by fleet users who receive substantial Benefit-in-Kind tax breaks when driving electric company cars.

New car registrations rose 25.8 per cent overall in the month as car makers continued to claw their way back from pandemic production chaos, but the industry’s focus is on the relatively low number of private buyers transitioning to electric vehicles. According to the Society of Motor Manufacturers and Traders, which compiles industry sales figures, the government needs to cut VAT on electricity sold at public EV chargers, in order to help quicken electric car uptake among the general public.

SMMT chief exec Mike Hawes said that while the majority of BEV drivers currently charge at home using electricity that’s five per cent VAT-rated, those without a driveway or parking space are forced to use public chargers where the rate of VAT is four times higher at 20 per cent.

“This is unfair and risks delaying greater uptake, so cutting VAT on public EV charging will help make owning an EV fairer and attractive to even more people,” Hawes says.

A total of 949,720 new cars have been sold in the UK in the first six months of this year, which includes 152,968 BEVs. That puts the market share for electric models at just 16.1 per cent, which is a problem for car makers faced with the government’s zero emissions mandate requiring that 22 per cent of the cars it sells should be electric by the end of the year. The SMMT argues it’s doing its bit by offering consumers a range of flexible deals and attractive finance rates, but that ‘other stakeholders’ need to do more.

However, according to a poll this week in the Daily Mail, the industry and other stakeholders have a big challenge on their hands convincing private drivers to make the switch to electric. The survey results suggest less than a third of drivers would feel confident about buying a BEV as a sole vehicle based on current charging infrastructure, while nearly 40 per cent would not feel confident in doing so. Additionally, says The Mail, only 28 per cent of drivers think the new petrol and diesel car sales ban from 2030 is a good idea, compared to 53 who think it’s a bad one – the newspaper is campaigning for the ban to be delayed as a result of its investigation.

The Mail campaign has caused an angry backlash in some quarters, not least from the chair of chargepoint trade body ChargeUK. Ian Johnston, who is also the CEO of Osprey Charging said: The Daily Mail’s recent coverage of electric vehicles is irresponsible in the face of deadly air pollution caused by road transport. Not supporting the clean transport transition risks the health of millions of British citizens and hundreds of thousands of jobs. Let’s stop the scaremongering and insulting consumers and businesses, who are driving the change and embracing the electric vehicles they know are the future.”

UK new car registrations by brand: June 2023

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