In a remarkable surge, new car sales in the UK soared to their highest February figure in 20 years, a trend propelled by companies investing in electric vehicles (EVs) for their fleets, despite a dip in private EV purchases.
According to data from the Society of Motor Manufacturers and Traders (SMMT), registrations of new cars leaped 14% year-on-year to 84,886 vehicles last month, marking the best February performance since 2004.
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The rise in electrified vehicles was particularly notable, with hybrid electric vehicle sales climbing 12.1% and plug-in hybrids experiencing a substantial growth of 29.1%. Battery electric vehicles (BEVs) also outpaced the market, increasing by 21.8% and accounting for 17.7% of registrations.
Despite these gains, private uptake of EVs remains subdued, with only 18.2% of new BEVs sold this year being purchased by individual buyers. The SMMT attributes this discrepancy to concerns over the cost of EVs, battery longevity, and the availability of charging infrastructure.
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To accelerate the transition to EVs, the SMMT has called on the government to introduce significant incentives. They suggest halving VAT on new EV purchases for three years, amending vehicle excise duty changes, and reducing VAT on public charging to match home charging rates.
Mike Hawes, the SMMT chief executive, emphasized the importance of addressing these challenges, stating, “Tackling the triple tax barrier… would boost EV demand, cutting carbon emissions and energizing the economy. It will deliver a faster and fairer zero-emission transition, putting Britain’s EV ambition back in the fast lane.”
