Data from the Society of Motor Manufacturers and Traders (SMMT) has revealed that electric vehicle sales in the United Kingdom (UK) have risen despite an overall drop in vehicle sales. The lobby Group’s data shows that EV sales were up in October as automakers sold 29,800 cars while petrol and diesel vehicle sales dropped by 14% and 25%, respectively.
Electric vehicle sales also increased by a quarter in October compared to October 2023 amidst efforts by carmakers to meet government emission standards, SMMT data shows. On the other hand, overall vehicle sales in October fell by 6% year-over-year, with diesel-powered car sales falling by 25% and petrol vehicle sales dropping by 14% as market demand for new vehicles wanes.
The United Kingdom’s zero-emission vehicle (ZEV) mandate requires that carmakers sell an increasingly larger share of battery electric vehicles (BEVs) every year as part of the country’s efforts to lower greenhouse gas emissions in the transport sector and combat climate change. The result is a wave of new EV models from several automakers and surging electric vehicle sales as more consumers opt for zero-emission vehicles over the familiarity of gas-powered cars.
Electric vehicle sales were especially high in September, and EVs now account for 18.1% of total sales in the UK, up from 15.6% at the same time last year. However, the car industry is trying to convince the UK government to either extend the electric vehicle mandate or provide subsidies to incentivize EV purchases as automakers are currently using discounts to encourage sales.
While this technique can attract buyers in the short term, it isn’t sustainable in the long term. Government incentives and subsidies have been critical to spurring sales in the nascent electric vehicle industry for the majority of its existence due to the prohibitively high costs involved in EV development. With the UK government eliminating EV subsidies for individual drivers in 2022, automakers seemingly have no choice but to offer discounted prices, even at the cost of their bottom lines, to meet the UK’s EV mandate.
Auto Trader reports that new electric vehicle discounts on the car trading site hit a high of 12.4% in October compared to 9% for internal combustion engine cars. Even so, climate-focused campaigners and analysts encourage the government to maintain its electrification timeline as the ZEV mandate has been effective so far.
SMMT chief executive Mike Hawes says a mass transition to electric cars at the ZEV mandate’s required pace will require major government intervention in regulation, infrastructure, and incentives.
The rising EV sales in the UK could provide the impetus that new battery chemistry developers like QuantumScape Corp. (NYSE: QS) need to move things faster and benefit from the upsurge in electric vehicle adoption.
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