New car market fell in October despite rise in EV sales

The UK’s new car market fell by 6% year on year in October but sales of electric vehicles remained healthy, according to new figures released by the SMMT. 

Electric cars were the only powertrain type to record a year-on-year sales increase, with petrol sales dropping 14.2%, diesels down 20.5% and hybrids and plug-in hybrids falling 1.6% and 3.2% respectively. EV sales, by contrast, rose 24.5%.

Petrol cars still dominate the overall market in the UK, with a 50.4% market share. Electric is the second most popular powertrain with a 20.7% share, followed by hybrids at 13.2%. Diesel is last, with a continually falling share that now stands at 6.2%.  

The SMMT suggested the growth of EV sales was partly down to falling prices. One in five electric cars are now priced lower than the “average petrol or diesel”, based on cars at £30,000, according to the SMMT. Wider choice and discounting also played a large part in the growth. 

Despite positive EV sales, the SMMT said the drop across the market as a whole meant an overall loss in turnover of £350 million for October.

The organisation also said the EV market share is “still significantly short of the 22% target for the year, and of the 28% which must be achieved in 2025” as part of the Vehicle Emissions Trading Scheme. 

It added that the Budget, announced by new chancellor Rachel Reeves at the end of October, was positive for existing EV business incentives. It also claimed that private buyers were disincentivised by changes to vehicle excise duty. 

The SMMT stated an urgent review would be needed if the government did not match the transitional commitment made by car makers. 

Mike Hawes, SMMT chief executive, said: “Massive manufacturer investment in model choice and market support is helping make the UK the second largest EV market in Europe. That transition, however, must not perversely slow down the reduction of carbon emissions from road transport. 

“Fleet renewal across the market remains the quickest way to decarbonise, so diminishing overall uptake is not good news for the economy, for investment or for the environment. EVs already work for many people and businesses, but to shift the entire market at the pace demanded requires significant intervention on incentives, infrastructure and regulation."