Rise in commercial fleet acquisitions of electric vehicles drives a 14% year-on-year surge, marking the 19th consecutive month of growth

In a remarkable milestone for the automotive industry, new car sales in the UK soared to their highest February figure in two decades, propelled by a significant uptick in companies adopting electric vehicles for their fleets, despite a decline in private electric vehicle (EV) uptake.

According to data released by the Society of Motor Manufacturers and Traders (SMMT), registrations of new cars surged by 14% year-on-year to reach 84,886 vehicles in February. This marks the strongest February performance since 2004 and signifies the 19th consecutive month of growth, primarily driven by corporate fleet investments in cutting-edge vehicles.

The growth trajectory was particularly buoyed by the increased adoption of electrified vehicles, with hybrid electric vehicle sales rising by 12.1%, plug-in hybrids experiencing a notable 29.1% growth, and battery electric vehicles (BEVs) outpacing the market with a remarkable 21.8% rise.

While the long-term outlook is subject to the forthcoming month of March, historically the busiest period for car sales, the current surge in EV uptake has been predominantly fueled by fleet purchases, driven by fiscal incentives. Conversely, private buyers accounted for less than a fifth of new BEVs sold in the current year.

Concerns over the affordability, battery longevity, and charging infrastructure for EVs persist among consumers, prompting calls for government intervention to stimulate demand. Suggestions include halving VAT on new EVs for three years, revising vehicle excise duty changes, and reducing VAT on public charging to align with home charging rates.

The SMMT emphasized the urgent need for a faster transition to EVs, particularly through incentivizing private buyers, as current policies hinder widespread adoption. Addressing these barriers, including the “triple tax barrier,” could accelerate the nation’s zero-emission transition, aligning with Britain’s ambitious EV targets.

Mike Hawes, Chief Executive of the SMMT, highlighted the importance of leveraging the momentum in the market, stating, “Tackling the triple tax barrier… would boost EV demand, cutting carbon emissions and energizing the economy. It will deliver a faster and fairer zero-emission transition, putting Britain’s EV ambition back in the fast lane.”