Private demand for new diesel cars is growing faster than for pure battery electrics, according to new figures released by the Society of Motor Manufacturers and Traders (SMMT). In September, registrations of new diesel cars for private buyers increased by 17.1% compared to the same month in 2023, amounting to 1,367 additional units. In contrast, pure battery electric cars saw a 3.6% year-on-year rise, representing an increase of 410 units despite significant manufacturer discounts.
The SMMT revealed that car manufacturers are projected to spend over £2 billion on discounting electric vehicles (EVs) this year to address the lack of demand. September marked a record month for battery electric car registrations, with 56,387 units sold. In response to these trends, key industry leaders including Ford, Stellantis, JLR, and Volkswagen Group have jointly called for urgent support from Chancellor Rachel Reeves to encourage more consumers to switch to electric vehicles, ahead of the upcoming budget announcement on October 30.
The coalition advocated for measures such as halving VAT on new EV purchases and reducing VAT on public charging to 5% to align with home charging rates. They emphasised the potential benefits of such support including a flourishing market, affordability for consumers, enhanced investment attractiveness, job creation, reduced emissions, and economic growth. However, concerns were raised over the industry’s likelihood to miss targets set by the zero emission vehicle mandate, which requires a significant percentage of new vehicle sales to be zero emission.
Despite September recording a 1.0% year-on-year increase in overall new car registrations, driven largely by fleet purchases, private consumer demand dropped by 1.8% and business sector volumes decreased by 8.4%. SMMT chief executive Mike Hawes expressed worries that the market growth is insufficient to meet mandated targets, jeopardising environmental goals and future investment. Industry experts highlighted that while record discounts are driving interest in EVs, there is still a substantial price premium compared to internal combustion engine vehicles.
Ian Plummer, commercial director at Auto Trader, noted the importance of financial incentives in stimulating EV sales and underscored the necessity of additional measures beyond discounts to promote further adoption. The ongoing debate surrounding diesel cars versus EVs reflects the complex challenges faced by the automotive industry as it navigates the transition to cleaner and more sustainable transportation systems.