Proactive Investors - New car registrations in the UK increased by nearly 18% last year, with 1.9 million new cars registered, the highest level since 2019.
Despite the overall growth, the demand for electric vehicles (EVs) is not increasing as expected, according to data from the Society of Motor Manufacturers and Traders (SMMT).
Sales of new battery EVs were 315,000, only 50,000 more than in 2022, representing 16.5% of total registrations, slightly down from the previous year’s 16.6%.
The SMMT is urging the government to cut VAT on all new zero-emissions vehicle (ZEV) purchases for the next three years by 50% to stimulate sales.
This could save consumers a total of £7.7 billion and increase the number of ZEVs by approximately 250,000 by 2026, the trade body estimates.
The increase in overall registrations was largely driven by fleet deliveries, which grew by 38.7% from the previous year.
The number of hybrid EV sales increased to 380,000 during the year, accounting for 20% of all new registered vehicles.
Superminis, such as the Ford Fiesta and Vauxhall Corsa, remained the most popular category of car, making up nearly a third (30%) of all new vehicles.
The government has provided over £2 billion to reduce purchase costs for drivers and to build the necessary infrastructure to support EV usage. However, in 2022, it ended grants of up to £1,500 for new EV purchases.