UK new car registrations were up by 1% year-on-year in September, according to the Society of Motor Manufacturers and Traders (SMMT).
The growth, which followed the first decline for more than two years in August, was driven by the fleet market, to which registrations rose by 3.7%, representing 54.2% of overall sales.
Private registrations fell by 1.8%, while business registrations, classed as those to organisations with fewer than 25 vehicles, were down by 8.4%.
In terms of fuel mix, there was a new record for EV volumes, with 56,387 registered – a 24.4% year-on-year increase, and representing a 20.5% overall market share. Fleets were responsible for 75.9% of EV registrations.
Plug-in hybrid sales were up by 32.1% for an 8.9% market share, while conventional hybrids were up by 2.6% to take 14.2% of the market.
Petrol cars were down by 9.3%, taking 50.1% of the market, while diesels were down by 7.1% for a 6.4% market share.
Despite the strong September for EV sales, the SMMT said that year-to-date demand for the vehicles from private buyers remained down by 6.3%. The organisation said manufacturers were on course to spend at least £2 billion on discounting EVs this year to stimulate demand.
SMMT chief executive Mike Hawes said: “September’s record EV performance is good news, but look under the bonnet and there are serious concerns as the market is not growing quickly enough to meet mandated targets.
“Despite manufacturers spending billions on both product and market support – support that the industry cannot sustain indefinitely – market weakness is putting environmental ambitions at risk and jeopardising future investment.
“While we appreciate the pressures on the public purse, the Chancellor must use the forthcoming Budget to introduce bold measures on consumer support and infrastructure to get the transition back on track, and with it the economic growth and environmental benefits we all crave.”
Reacting to the figures, BVRLA chief executive Gerry Keaney said: “September’s figures show that BEV registrations have gained some much-needed momentum, on the back of heavy discounting from manufacturers and sustained investment from business fleets.
“This growth is welcome but will remain unstable and unsustainable unless the Government comes up with a long-term strategy for supporting the BEV market towards its ambitious ZEV mandate and phase out targets.
“Collapsing used BEV values – down 60% over two years and forecast to continue falling – have already led to an anticipated loss of 220,000 new EV sales. That ground now needs to be made up. Falling used values are eroding the confidence of fleet buyers and making the most popular way of financing a new electric car more expensive.
“We need used EV-targeted grants, tax incentives and a confidence-building communication campaign to boost retail demand and stabilise prices.”
