A few days ago, data from the British Automobile Manufacturers and Traders Association (SMMT) showed that in June this year, the number of new car registrations in the UK increased by 6.7% year-on-year to 191,316 units, which has achieved growth for the second consecutive month. It was the best June since 2019, driving UK new car registrations up 3.5% year-on-year to 1,042,219 units in the first half of this year, but still 17.9% below pre-pandemic levels.
Image source: SMMT
In terms of power type, in June of this year, in the UK market, pureElectric vehiclesales surged 39.1% y/y to 47,354 units, with a market share of 24.8%; Sales of plug-in hybrid vehicles increased by 28.8% y/y to 21,382 units; Hybrid vehicle sales decreased by 8.5% y/y to 23,835 units; Sales of gasoline vehicles decreased by 4.2% y/y to 88,029 units; Diesel vehicle sales were 10,716 units, almost unchanged year-on-year (+0.2%); The combined market share of gasoline and diesel vehicles has fallen to 51.6%.
In the first half of this year, UK battery electric vehicle registrations rose 34.6% year-on-year to 224,841 units, driving the market share of pure electric vehicles to 21.6%, but still below the 28% required by UK market regulations. It is worth noting that in order to achieve the current market penetration rate, car companies have provided up to £6.5 billion in car purchase discounts in the past 18 months. In SMMT’s recent survey of automotive CEOs, more than half (55%) of respondents said they believe the UK is well behind expectations on its goal of “completely phasing out new vehicles with pure internal combustion engines by 2030”.
At present, the demand for pure electric vehicles in the UK is being suppressed by a double suppression: on the one hand, the British government lacks car purchase incentives and charging subsidies; On the other hand, fiscal repression policies have increased, for example, since April this year alone.UK Premium Cars Surtax Policy (ECS)This will cost consumers an additional £360 million on pure electric vehicles.
Industry leaders agree that financial incentives for private purchases of BEVs are the most critical move to boost demand for BEVs, boost economic growth and strengthen the foundation of the UK’s automotive manufacturing industry, and are in line with the core objectives of the UK government’s new industrial strategy.
Mike Hawes, CEO of SMMT, said: “The growth of the UK new car market for two consecutive months is a positive sign, and the excellent performance of electric vehicles is equally encouraging. However, the current growth of the UK EV market is mainly dependent on strong support from manufacturers and unsustainable discount strategies, and the share of EVs in the UK market is still not up to statutory requirements. International experience shows that government incentives can significantly accelerate market transformation, and without these supports, our shared climate change goals are threatened. ”
Experts suggest that if the UK adjusts its ECS policy to exclude most pure electric vehicles from the scope of levy, while cutting VAT on new pure electric vehicles and public charging services, the demand for pure electric vehicles in the UK market may be significantly boosted. This will not only help create a vibrant home market in the UK, but will also put the UK ahead of the curve in the decarbonisation process and vehicle affordability. If the relevant policy is implemented for three years, the sales of pure electric vehicles in the UK are expected to increase by 267,000 units, reducing carbon dioxide emissions by 6 million tons per year.
Other than thatGasso Automotive Research InstituteAccording to data, in May this year, China exported a total of 28,050 passenger cars to the UK, including 13,052 pure electric vehicles.