Retail demand for new cars increased by 4.6% in February to outperform the overall market that dipped by 1%.
Private demand in the UK is up slightly year-to-date by 1.5% to 80,081 units.
New data from the Society of Motor Manufacturers and Traders (SMMT) showed that electric vehicles accounted for a quarter of all new car registrations for February, securing a 25.3% market share.
The rise in private demand, in what is historically a small month for new car registrations anyway, offset the drop in fleet volumes, which fell by 4%.
The SMMT said the increase in EV registrations compared with the rest of the market was unsurprising considering the forthcoming tax changes in April, which will see many EV models subject to the vehicle excise duty expensive car supplement (ECS) for the first time.
The February performance maintains a positive trajectory for EVs but still falls short of the 28% target for 2025 and, given February comes ahead of the March numberplate change, the SMMT said “it is always one of the smallest and most volatile months”.
The SMMT is expecting next month to see a further surge in EV uptake, as buyers capitalise on the new ’25 plate and take their last chance to avoid the ECS which, from April 1 will add £2,125 over six years to the cost of BEVs with a list price above £40,000.
The trade body said that relative to the rest of the market, EVs are disproportionately affected as higher production costs mean the average EV retails above the ECS threshold, a threshold which remains unchanged since its introduction in 2017.
The introduction of this measure also risks disincentivising the used market as well as the new, impeding a faster, fairer transition.
Mike Hawes, SMMT chief executive, said: “Although February’s figures show a subdued overall market, the good news is that electric car uptake is increasing, albeit at huge cost to manufacturers in terms of market support.
“It is always dangerous, however, to draw conclusions from a single month, especially one as small and volatile as February.
“With the all-important March number plate change now upon us, and tax changes taking effect in April that will, perversely, dissuade EV purchases, we expect significant demand for these new products next month – but, long term, EV consumers need carrots, not ever more sticks.”
Mini and Tesla top the new car registrations in February
Sue Robinson, chief executive of the National Franchised Dealers Association (NFDA), said: “Last month, NFDA submitted its response to the Government consultation on proposals to support the UK’s transition to zero-emission vehicles.
“A key focus of NFDA’s response is the urgent need for incentives, emphasising that stimulating consumer demand is crucial for driving market growth.
“Looking ahead, next month’s figures will see the added impetus of March being a plate change month, which should provide a boost to the market.
“Dealerships are well-prepared for this rapidly changing landscape, and it is important to note that next month will bring several changes, including EVs becoming subject to Vehicle Excise Duty.”
