UK auto industry warns of softening BEV demand
The UK automotive industry expects demand for battery electric vehicles (BEVs) to soften this year, despite bullish trends for the new car market, Kallanish reports.
Khodrocar - The Society of Motor Manufacturers and Traders (SMMT) has downgraded the expected 2023 market share for BEVs from 19.7% to 18.4%. The outlook for 2024 is also lower at 22.6% compared to a 23.3% forecast in January.
High energy costs and insufficient charging infrastructure are cited as the culprit for demand softening. "The broader economic conditions and chargepoint anxiety are beginning to cast a cloud over the market’s eagerness to adopt zero emission mobility at the scale and pace needed,” says SMMT ceo Mike Hawes.
Once again, he says that to ensure all drivers can benefit from EVs, government, local authorities, energy companies and charging providers must accelerate investment in the transition. That’s the way to bolster consumer confidence in making the decision, Hawes adds.
The sentiment for the overall car market, however, is bullish. As supply chain disruption eases, SMMT anticipates total new car sales to increase 13.5% this year to 1.83 million units. The trade body had earlier forecast sales this year would reach 1.79m units.
In April, total car sales in the UK rose by 11.6% on-year to 132,990 registrations. Meanwhile, BEV sales increased 59.1% to 20,522 units and a market share of 15.4%, up from 10.8% in April 2022. The powertrain was the second most popular fuel type last month.
Registrations of plug-in hybrid electric vehicles (PHEVs) increased 33.3% in April to 8,595 units, while hybrid electric vehicles (HEVs) sales rose 7.7% to 15,226 units. Together, electrified vehicles accounted for more than one in three UK new registrations last month, with a combined market share of 33.2%.
Latest News