Demand for new diesel cars growing faster than for EVs
Private demand for new diesel cars is growing faster than for pure battery electrics, preliminary figures show.
The Society of Motor Manufacturers and Traders (SMMT) said registrations of new diesel cars for private buyers in September grew by around 17.2% compared with the same month in 2023, up 1,369 units.
That is compared with an approximately 3.7% year-on-year rise for pure battery electrics – up 430 units – despite heavy discounting by manufacturers.
Final figures will be published at 9am on Friday.
The SMMT said car makers are on course to “spend at least £2 billion on discounting electric vehicles (EVs)” this year in an effort to offset the “underlying paucity of demand”.
Record
September was a record month in terms of overall battery electric new car registration volumes, at around 56,362 units.
The SMMT and senior UK leaders at major vehicle manufacturers such as Ford, Stellantis, JLR and Volkswagen Group have written to Chancellor Rachel Reeves calling for urgent support to encourage more consumers to switch to electric motoring, ahead of her Budget on October 30.
The signatories called for measures such as halving VAT on new EV purchases and reducing VAT on public charging from 20% to 5% to match the home charging rate.
They wrote: “We appreciate the severe constraints on the public purse, but deliver this support to consumers and the benefits are myriad: a thriving market, enhanced consumer choice and affordability, investment attractiveness, high-value job creation, cleaner air, quieter streets and economic growth.
“We know your Government is committed to a vibrant and competitive UK automotive industry.
“With the right measures, the right consumer support, we can fix the foundations of this transition and with it deliver the biggest technology transition ever attempted, and the economic growth and environmental improvements that should be non-negotiable.”
Targets
The signatories added that the industry will “likely miss” targets set by the zero emission vehicle mandate, which requires at least 22% of new cars and 10% of new vans sold by each manufacturer in the UK this year to be zero emission, which in most cases means pure electric.
Manufacturers face being required to pay the Government £15,000 per polluting vehicle sold above the limits, or purchase credits from rival companies.
The letter warned that “these are not consequence-free choices”, and it is “the consumer who pays” as costs are passed on.
The overall number of new cars registered last month rose by 1.1% year on year to 275,089 units.
September is traditionally a bumper month for the industry due to the release of new number plates.
Growth was driven by purchases for fleets owned or leased by businesses or other organisations, which were up 3.8%.
Private consumer demand fell by 1.7%, while the smaller business sector saw volumes decrease by 8.3%.
SMMT chief executive Mike Hawes said: “September’s record EV performance is good news, but look under the bonnet and there are serious concerns as the market is not growing quickly enough to meet mandated targets.
“Despite manufacturers spending billions on both product and market support – support that the industry cannot sustain indefinitely – market weakness is putting environmental ambitions at risk and jeopardising future investment.”
Discounts
Ian Plummer, commercial director at online vehicle marketplace Auto Trader, said: “Electric vehicle sales surged in September.
“Record discounts are driving the interest as brands and retailers do all they can to stimulate sales, showing once again just how sensitive the market is to financial incentives, and the importance of overcoming the current EV cost barrier.
“There’s still much to do to drive further levels of interest and sales – and discounts can only last so long.
“Other measures are needed to help buyers make the switch to electric cars which still carry a 30% price premium over their ICE (internal combustion engine) counterparts.”
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What are the figures for 2nd hand purchases of EV cars. Compared to diesel and petrol vehicles?The comprehensive costs of battery replacement needs to be widely reported as a matter of public interest.
People don’t want the bleedin’ things! The sheer arrogance of the eco-loons in thinking they can force people to make purchasing choices against their will is astonishing.
It’s the same old story and all about British greed. Manufacturers and dealers saw an opportunity to cash in when the government announced that the future was electric vehicles. Well, it is now backfiring on them, so tough 💩 if they can’t sell them. They are now planning on reducing the cost. Why didn’t they sell them at a reasonable price in the first place? GREED, that’s why!!
The profit on ev is the same as as for other cars. And it’s nothing to do with British greed – the lack of interest in EV is worldwide in western countries.
I would go battery tomorrow but the cost of new is too high and the question mark on second hand batteries. But I wouldn’t buy an oil burner again.
I read one magazine that has a new Ford small battery car starting at 26+k. Too much. I wont risk a second hand battery unless there is a lot of backup provided by the manufacturers for the life of the car, that needs legislation. Charging is also an issue.
Battery health is not the issue people make it out to be. I’m driving an 11 year old electric car and it still has more than two thirds of its original battery capacity. Modern electric cars are much better at protecting their packs as they have thermal management systems built in that my car does not have.
I’m not sure about buying a new car again (it is a nice thing to do once if you can afford it) A new car is an incredibly expensive outlay compared to second hand. Second hand electric is a risk compared to recent developments re battery development. As far as being environmentally friendly surely keeping and maintaining the car you have is preferable to being encouraged to dispose of a perfectly good vehicle for a ‘green’ EV.
Not surprising.
Recent history of swing to EV’s is like the Gold Rush except the rush has died down due to cost of acquisition and risks associated with the costs of maintenance especially battery life and reliability after 3-5 years. Hybrid is a lot safer, not so “green” for blinkered people but if you can get a hybrid to run a long life like a proven diesel motor then the whole life costs of that hybrid will be much lower including a factor for “Carbon issues”.
What some people don’t realise is that there are power stations burning gas to produce electricity to charge the batteries. Not so environmentally friendly as the government will have us believe.
At least we don’t have coal anymore.
But on average, through the lifetime of the car, I expect there are paybacks even if a gas power station is supplying the juice when the numbers are factored in.
wind is providing around 30% at the moment.