Electric car sales are still falling short of ZEV targets
EV sales were up slightly last month year-on-year, but overall sales were down as buyers tried to dodge increased road tax
Car registrations in the UK have fallen yet again for the sixth time in seven months, with EV sales still far away from the lofty targets still required by the ZEV Mandate following the conclusion of its review last month.
Just over 120,000 new cars hit the road across the UK in April which, according to the Society of Motor Manufacturers and Traders (SMMT), is 10.4 per cent fewer than in the same period last year. Crucially, however, although the popularity of electric cars continues to grow – the number of new examples registered last month was a modest eight per cent up on 2023, at 24,558 – market share still sits at around one in five new cars, which is eight per cent shy of what’s required for 2025 by the ZEV mandate.
By way of explanation, the SMMT points towards the latest changes to VED (Vehicle Excise Duty) road tax in April. These saw electric cars now liable for the yearly charge of £195, as well as the hefty Expensive Car Supplement (also known as the Luxury Car Tax) of £425. Of course, it’s not only EVs that were hit by the changes, because tax rises were seen across the board, notably with first-year tax rates seeing a big jump for the most polluting new vehicles.
Such a wide-reaching tax increase meant many buyers brought their purchases forward in order to dodge some of the financial burden, but nevertheless the slump in sales is representative of a market full of uncertainty and lacking in support.
The chief executive of the SMMT, Mike Hawes, described the latest figures as “disappointing, but expected after March’s surge.” Such a sentiment was backed up by John Cassidy, the managing director of sales at Close Brothers Ltd – one of the UK’s largest car finance brokers and one of the firms caught up within the ongoing car finance scandal.
“Following a record month for electric vehicle registrations, April has proved to be something of a step back to normality in this regard,” Cassidy said. “Numbers continue to fall well short of the zero emission vehicle mandate targets, and the Government needs to think seriously about how to incentivise uptake of electric vehicles.”
Cassidy called for what he described as a “funding boost for EV charging infrastructure”, stating that “57 per cent of motor dealers believe there isn’t enough time to improve the infrastructure for the ban to go ahead. Arguably, people are yet to be convinced that the 2030 target isn’t unrealistic.”
Hawes also called for Government action, noting that “EV uptake is still being heavily and unsustainably subsidised by the industry, which is why a compelling package of measures from Government is essential if consumers are going to make the switch.”
Auto Express has asked the Department for Transport whether it plans to introduce further measures to stimulate the market beyond what was announced at the end of the ZEV consultation, but it refused to comment, simply pointing to the changes it has already laid out.
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