The latest data from the Society of Motor Manufacturers and Traders (SMMT) suggests that the growth shown in car sales in August (the first growth since February) was largely driven by Electric Vehicles (EVs). EV sales have consistently been one of the few areas of the car market to show much life over the last year or so. EVs had a 35.4 per cent rise in sales in August 2022 compared to August 2021.
Pure EVs have approximately 14.5 per cent share of the UK’s car market. Interestingly there was an improvement in EV sales in the van sector where EV penetration has lagged behind the car sector on a fairly consistent basis. This is one area where improving battery technology and faster charging times will, no doubt, make a big difference to sales.
The growth of EV sales, whilst still strong, is slower than in 2021. Over the initial eight months of 2022, EV sales grew by 48.8% (137,500 vehicles sold) but for the comparable period in 2021 that growth rate was in excess of 100%. Given the wider economic challenges this reduction in the growth rate is not really a surprise and in fact the achieved growth of 48.8% is fairly remarkable.
Plug-in hybrid registrations reduced by 23 per cent to comprise just 5.6 per cent of monthly sales in August. Demand for hybrid electric vehicle sales remained fairly stable, compared to August 2021.
If you look at the market penetration of all types of electric vehicles (hybrid and non-hybrid), then the EV sales comprised 20% of cars sold in August.
Supply chain issues continue to be a challenge for EV manufaturers with shortages of some key components and materials. There have also been some questions asked over the likely impact of energy price rises on the economic viabiity of running a EV.
The cost of charging a vehicle would (and is!) increasing but how far that impact goes, will depend very heavily on Government policy towards energy price rises over the coming months. At the current time, EV running costs overall, continue to be favourable in comparison to the costs of running a fossil fuel vehicle.
