UK new car sales slump despite growing EV demand

(Sharecast News) - New car sales in the UK declined in January for the fourth straight month, according to figures out on Wednesday from the Society of Motor Manufacturers and Traders (SMMT), with growth in electric and hybrid models offset by falls in conventional fuel vehicles. Registrations totalled just 137,000 last month, down 2.5% from 142,876 in January 2024, with the SMMT blaming "weak consumer confidence and tough economic conditions".

Sales of diesel vehicles fell 7.7% year-on-year to 8,625, while petrol vehicle sales dropped 15.3% to 70,075, meaning the combined market share of conventional fuel cars fell to 56.5%, down from 64.4% a year earlier.

Battery electric car sales jumped 41.6%. year-on-year to 29,634, with BEVs now accounting for 21.3% of the market, up from 14.7% last January.

Sales of plug-in hybrid electric vehicles rose 5.5% o 12,598, while hybrid electric vehicles rose 2.9% to 18,413.

However, while EV demand is clearly growing, sales are not rising fast enough to deliver current ambitions, according to SMMT chief executive Mike Hawes.

"Affordability remains a major barrier to uptake, hence the need for compelling measures to boost demand, and not just from manufacturers. [...] Rather than penalising EV buyers, we should be taking every step to encourage more drivers to make the switch, helping meet government, industry and societal climate change goals," he said.