UK Electric Car Sales Surge but Iran War Inflation Could Temper Growth
UK Electric Car Sales Surge but Iran War Inflation Could Temper Growth

UK electric car sales jumped nearly 60% in April, pushing total registrations past two million, according to the Society of Motor Manufacturers and Traders (SMMT). However, the industry body warned that the conflict in Iran could dampen demand due to rising inflation and energy prices.

New car sales rose 24% year-on-year to 149,247 in April, with battery electric vehicles (BEVs) accounting for 26.2% of the market. The SMMT said the two millionth electric car was registered, but cautioned that the war's full impact on consumers is yet to be seen, potentially tempering interest in EVs.

The jump in registrations partly reflected a rebound from a weak April last year, when consumers rushed to buy before vehicle tax changes. The exemption from vehicle excise duty for zero-emission cars was scrapped on 1 April 2024, and the expensive car supplement applied to BEVs over £40,000, later raised to £50,000.

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Despite the surge, BEVs have made up 23.1% of the market this year, below the 33% required by the zero emission vehicle mandate. The SMMT downgraded its 2026 BEV share forecast to 26.8% from 28.5%, citing high energy, production and charging costs.

SMMT chief executive Mike Hawes said: 'April's rebound is welcome, but underlines just how significantly fiscal changes can influence the market. Two million electric car registrations is a considerable milestone to celebrate, although natural demand is still well below the level demanded by the mandate.'

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