The UK registered its millionth electric car in January 2024, as the fleet market continued to drive growth in registrations of zero-emissions models.
A total of 142,876 new cars were sold over the past month, making it the market’s strongest January since the pandemic hit in 2020.
Of these cars, 20,935 were electric, giving EVs a market share of 14.7%.
This is up 1.6% on January 2023, although still some distance behind the 22% target set by the government’s zero-emission vehicle mandate.
This growth was “driven entirely” by the fleet market, according to the Society of Motor Manufacturers and Traders (SMMT), as fleet sales rose by 29.9% year on year while retail sales fell by 15.8%.
The strength of the fleet market also explains why registrations of plug-in hybrids – which receive significant benefit-in-kind tax incentives – also grew by a large margin.
Fleet sales accounted for 63.2% of all those in January; PHEV registrations were up by 31.1% year on year to 11,944.
Meanwhile, the market shares of diesel, hybrid and petrol cars were all down, although petrol remains by far the dominant fuel choice in the UK.
In all, 81,905 petrol cars were registered in January, a 7.5% increase on the same month last year but also giving them a 0.4% smaller share of the market, at 57.3%.
Diesel sales fell below 10,000 (to 9348 cars), a 10.1% shortfall on January 2023.
Hybrid sales were down by 1.2% to 18,744 cars, giving them a share of 13.1%.
SMMT chief Mike Hawes called on the government to halve VAT on EVs “to help consumers buy the vehicles on which net-zero depends”.
The SMMT added in a statement: “Such a step would cost the Treasury an average of just £1125 per car, which is less than the cost of the previous Plug-in Car Grant and would put more than a quarter of a million electric – rather than petrol or diesel – cars on the road by the end of 2026, on top of those already expected.”
The RAC backed the call for a VAT cut, with policy chief Simon Williams saying: “The government must also play its part by stimulating demand at scale and making zero-emission driving more affordable.
"We urge the Chancellor in March’s budget to reintroduce a form of the Plug-in Car Grant aimed at the cheaper end of the EV market and cut VAT on public chargers to match the 5% rate levied on domestic electricity.
"This would make charging significantly more affordable for those who can’t charge at home or those who regularly have to recharge on long journeys."
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