UK electric car sales hit record high with subsidy boost
UK electric car sales hit record high with subsidy boost

British electric car sales reached a record high in September, driven by new taxpayer subsidies that helped attract buyers during the most important month for the market. Battery electric vehicle (EV) sales rose by nearly a third compared with the same month last year, to 72,800, according to preliminary figures from the Society of Motor Manufacturers and Traders (SMMT).

The UK government reintroduced an electric car grant in July after intense lobbying from carmakers who argued they were struggling to meet targets under the zero emission vehicle (ZEV) mandate. The grant, worth up to £3,750, applies to only about a quarter of battery cars on sale in the UK, including models from Citroën, Renault, Nissan and Vauxhall, due to rules on manufacturing emissions that effectively block Chinese brands and an upper price limit of £37,000.

Sales of plug-in hybrids, which combine a petrol engine with a smaller rechargeable battery, jumped by 56% to 38,300. Hybrid sales have boomed as carmakers shift focus towards more profitable vehicles amid intense competition, particularly from Chinese rivals. Pure electric and hybrid cars together accounted for more than half of the market in September, helping overall sales rise by 14% year-on-year to 312,900, the strongest September since 2020.

Transport Secretary Heidi Alexander said: “Our discounts have sparked a surge in electric car sales, making them cheaper and within reach of more households than ever before.” Mike Hawes, chief executive of the SMMT, added: “Electrified vehicles are powering market growth after a sluggish summer – and with record ZEV uptake, massive industry investment is paying off, despite demand still trailing ambition.”

The share of electric car sales so far this year is 22.1%, below the 28% headline target under the ZEV mandate. However, the mandate includes flexibilities that the government made more generous in April, despite warnings from the Climate Change Committee that the concessions could lead to higher carbon emissions. New Automotive, a thinktank, estimated the true target for battery car sales is below 22%. David Farrar, policy manager at New AutoMotive, noted that early evidence from the grant take-up, which will help only the first 400,000 buyers, suggested the scheme might close earlier than intended.