Electric vehicles take sixth of new car market

Sales have been impacted by the cost-of-living crisis, surging fuel costs and supply chain disruption bringing a lack of supply of vehicles.

One leading forecaster believes new car sales this year will be lower than the 1.6 million registered in 2020, which was the worst year since the recession of 1992, according to The Times.

There were 140,000 new registrations in June 2022, which is the worst figure for June since 1996. The number is down 24% from June 2021.

With June’s figures, sales for the first half of this year have reached 802,000 – 11% below the first half of 2021.

Pure-electric sales are outpacing diesel sales, which nearly halved year-on-year to 83,000 to account for 10% of the market. Sales of pure-electric rose 14% in the month to 22,700.

For the first six months, sales of pure-electric cars were up 56 per cent to 115,000, accounting for 14% of all sales.

Petrol sales are also in sharp decline, down 16 per cent year-on-year at 460,000, though they still account for 57% of market share.

Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, which released the data, said the acceleration in electric car sales was linked to record high prices for petrol and diesel.

“With motorists facing rising fuel costs, the switch to an electric car makes ever more sense and the industry is working hard to improve supply and prioritise deliveries of these new technologies given the savings they can afford drivers,” he said.

Lisa Watson, director of sales at Close Brothers Motor Finance, said: “The soaring cost of living remains at the top of the agenda for consumers, with the price of electricity, petrol, and diesel all on the rise.

“This means prospective car buyers are having to think not just about the upfront cost, but also the ongoing maintenance and running expenses of a vehicle. It’s clear this is dampening demand for new cars.”