Sales of electric cars are not keeping pace with the broader market, as shown by recent figures. The industry is once again urging the government to offer incentives to individual buyers to drive the adoption of electric vehicles after a drop in market share for private sales in March.
Data from the Society of Motor Manufacturers and Traders (SMMT) reveals that while electric cars accounted for 15.2% of new registrations last month, down from 16.2% a year ago, registrations to company fleet buyers increased while private sales declined. In contrast, overall car sales, including petrol, diesel, and hybrids, rose by 10.4% to 317,786 vehicles in March, marking the best performance for that month in five years.
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The surge in fleet sales, which include businesses like car rental and taxi companies, saw a significant jump of 29.6%. However, sales to private buyers decreased by 7.7%, reflecting the challenging economic climate marked by low growth, weak consumer confidence, and high-interest rates. The decline in electric vehicle market share underscores the pressing need for government assistance, according to Mike Hawes, the SMMT's chief executive.
He highlighted the struggle faced by the automotive industry amidst a hesitant private market and shrinking electric vehicle share. The SMMT is advocating for governmental support such as the halving of VAT on electric cars and lowered rates at public charging points to stimulate consumer demand. Car dealership group Vertu Motors CEO, Robert Forrester, echoed the challenges faced by individual buyers due to the high cost of electric vehicles and lingering concerns associated with issues like range anxiety. In response, the
Department for Transport underlined the government's efforts to promote electric vehicle adoption, highlighting the £381m Local Electric Vehicle fund and emphasizing the continuing drive toward electric mobility. Looking ahead, automakers that fail to meet the Zero Emission Vehicle (ZEV) mandate targets could face financial penalties, further underscoring the shift towards zero-emission vehicles.
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