Automakers had their worst year of UK sales in three decades, with only electric vehicles providing a bright spot.
(Bloomberg) — Automakers had their worst year of UK sales in three decades, with only electric vehicles providing a bright spot.
Battery-powered cars accounted for around 17% of new-vehicle registrations last year, overtaking diesel for the first time, the Society of Motor Manufacturers and Traders said Thursday. That didn’t stop overall shipments from declining 2% to 1.61 million — the lowest level since 1992.
Carmakers struggling with parts shortages have more recently faced intensifying headwinds including soaring energy and borrowing costs. While the increase in demand for battery cars is promising, SMMT warned that corporate buyers accounted for two-thirds of new EV registrations.
The UK needs to convince more private drivers to buy an EV if it wants to meet its climate targets, including by speeding up the installation of charging points, SMMT said. The group also criticized the UK’s plan to subject EVs to road taxes from 2025, saying the move would penalize customers of zero-emissions vehicles.
“The shift is inevitable, the question is the pace,” Mike Hawes, SMMT’s chief executive officer, told reporters.
Tesla Inc.’s Model Y and Model 3 were the two most popular electric vehicles in the UK last year, followed by Kia Corp.’s e-Niro. SMMT still expects around 1.8 million new-vehicle registrations this year as supply chains begin to stabilize and the global semiconductor shortage improves.
Read more: The UK Car Industry’s Prospects Are Going From Bad to Worse
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