EVs energise the market but we need to drive long term growth
The fourth consecutive month of growth for the new car market gave us good reason for optimism this week, as the latest industry figures for November showed a 23.5% growth. As supply chain shortages begin to ease, albeit erratically, growth was driven by registrations from large fleets, and of battery and hybrid electric vehicles, signposting concerted recovery in the months ahead.
The latest figures are encouraging, especially with November recording the largest monthly market share of battery electric cars this year, demonstrating the ever-growing choice of zero emission models available and growing public enthusiasm for zero emission mobility. EV demand proved to be a bright spot for both new car and van sales, with uptake increasing in both segments by 35.2% and 14.8% respectively.
Disappointingly, however, semiconductor shortages continued to stifle overall deliveries, with the impact more noticeable in the new light commercial vehicle market where November registrations fell to the lowest recorded level for the month since 2013. While this is compared with an artificially inflated November last year, it demonstrates the difficult, volatile operating conditions faced by manufacturers.
To realise the growth this sector can deliver for the UK, it is essential that every lever is pulled to encourage motorists and operators to make the shift to electric, especially with looming net zero deadlines. This means measures that boost buyer confidence, including a fiscal framework to encourage adoption of these new technologies and investment, and targets to drive the rapid rollout of accessible and affordable charging infrastructure for all vehicle types – ahead of need. With the introduction of the ZEV Mandate now imminent, and still no detail about its application, these are actions that must be delivered urgently.
We will explore all of these issues and more at SMMT Electrified 2023, which will bring together representatives from across automotive, adjacent sectors and government to discuss how to accelerate the transition to zero emission mobility and ensure that the UK is able to meet its ambitious decarbonisation goals. SMMT Members are eligible for one complimentary ticket per organisation, for more information or to purchase additional tickets contact the team by email electrified@smmt.co.uk.
