Demand for electric vehicles slows as drivers turn back to petrol
ELECTRIC car demand has slowed sharply in a sign that drivers are turning back to petrol.
The market share of battery electric vehicles (EV) declined last month, the Society of Motor Manufacturers and Traders (SMMT) said.
EV registrations rose only 3.8pc from a year earlier, compared with a 10pc advance in the overall car market. Hybrid and petrol-powered cars showed the strongest growth.
Petrol engine sales rose 9.2pc and accounted for more than half of the total, while plug-in hybrids had a 37pc increase. What gains EVS did achieve in
March were driven entirely by fleet and business purchases, with sales to ordinary drivers dropping, the SMMT said.
The figures add to evidence that the immediate market for battery-powered cars is a limited one. Early adopters desperate to drive a zero-emissions vehicle have already made the switch but the mass market is proving more reluctant.
EVS cost significantly more than a similar diesel or petrol model, which is a major deterrent. Concerns about the UK’S sparsely spread charging infrastructure also continue to stoke so-called range anxiety.
Carlos Tavares, the head of carmaking giant Stellantis, whose brands include Vauxhall, Peugeot and Fiat, warned that EVS are unlikely to ever be universally popular among drivers.
Mr Tavares said at the company’s Freedom of Mobility Forum: “We should move away from a dogmatic thinking where one size fits all.
“I don’t think this is going to work. What I would like to add is that the current EVS can be a solution for some of our societies.”
Mr Tavares said the 1,100lbs (500kg) of raw materials required to produce an EV battery pack is not sustainable and said a technological breakthrough was required to halve the weight of battery packs over the next decade.
The market share of battery vehicles fell to 15.2pc of sales in the UK in March, down from 16.2pc a year earlier, SMMT figures showed.
Mike Hawes, chief executive of the SMMT, said the shrinking share showed the challenge of boosting EV acceptance. Marques including Tesla have cut prices this year to boost sales.
Carmakers have also been offering enticements such as 0pc finance and zero deposit, as well as packages that include servicing and maintenance. Mr Hawes warned “compelling offers” from manufacturers could not be sustained indefinitely. The SMMT called for VAT on new EV sales to be halved, changes to plans to introduce road tax for the vehicles and a reduction in taxes on public charging points to bring them into line with home charging.
Cheaper Chinese vehicles are beginning to flood Western markets and could kick-start higher EV adoption. However, there are concerns about the security of Chinese-made cars as well as fears state-subsidised manufacturers could undercut Western brands. The US has labelled Chinese EVS a national security threat. Almost 318,000 cars were registered in the UK in March, the SMMT said, the highest monthly figure since 2019. Fleet purchases of 25 or more vehicles surged by 30pc, while private sales slipped 7.7pc.
Ford said yesterday it will delay the rollout of a large electric SUV by two years to 2027 to allow the market for three-row EVS to gain ground. The layoff of 2,700 workers in Canada will be extended as a result.
Deliveries of Ford’s electric F-series pick-up will also be pushed back to 2026. The company will refocus on three smaller battery models starting at $25,000 (£19,700) to help boost demand, Bloomberg reported.