Proactive Investors - Volkswagen (ETR:VOWG_p) emerged as the UK’s most-sold brand in June as battery-powered cars continued to gain traction against fossil-fuelled alternatives.
15,185 Volkswagen-branded cars accounted for 8.6% of all UK registrations during the month, according to data from industry body The Society of Motor Manufacturers and Traders.
31,700 battery-powered vehicles made up 17% of a total 177,266 cars registered in June meanwhile, with the number jumping by 40% from the same period a year earlier.
Industry experts warned growing popularity of electric vehicles (EV) meant more needed to be done to support domestic production though, with just four mass manufacturers currently operating in the UK.
“We urgently need a long-term strategy for building advanced automotive manufacturing supply chains in the UK if we are to realise a sustained uptake of electric vehicles.
“At the heart of the problem is the requirement to deliver domestic lithium battery manufacturing,” Jon Lawes, director at leasing firm Novuna Vehicle Solutions, commented.
Britishvolt is set to become the UK’s first mass EV battery producer, though plans for its Northumberland-base gigafactory have faced doubt since the company’s required rescue from collapse early this year, prompted by a lack of government support.
UK-based big-name manufacturers Nissan, BMW, Toyota and Jaguar Land Rover have all expressed a need for government funding in recent years too, as subsidies offered under President Biden’s US$369bn Inflation Reduction Act aim to entice EV makers.
In another blow, UK and EU manufacturers will face 10% tariffs on exports from next year if they fail to source at least 45% and 60% of car and battery parts respectively from Europe.
Some manufacturers have threatened to move operations out of the UK as a result of the post-Brexit tax, which would affect EVs being shipped between the two.
Prime Minister Rishi Sunak reassured the UK was “in dialogue” with the EU over the rules in May though, after manufacturers argued there was not enough local production capacity to even meet the quotas.