Demand for electric vehicles accelerated in January, with fully battery-powered cars outperforming an overall contraction in the car market that the industry blames on declining business and consumer confidence.
Battery EVs (BEVs) accounted for 21% of almost 140,000 new car registrations in January, the highest-ever share for the month and a year-on-year increase of 41.6%.
It establishes BEVs as the second-largest sector of the new car market, behind only petrol, which contracted by 15% to make up just over 50% of registrations.
In an overall market that shrank by 2.5%, diesel registrations declined to just over 6% of registrations. Hybrid electric made up 13% of the market, and plug-in hybrids 9%, underlining the consumer shift towards full or partial electric powertrains.
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Despite the growth of electric sales, manufacturers continue to warn that the market will not support the growth required to hit government EV targets, and called for consumer incentives and the extension of tax breaks.
Under net-zero targets introduced by the last government, manufacturers will face fines of £15,000 per vehicle if electric vehicle sales fall short of 28% of total production this year, an increase from 22% in 2024.
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The new government says it is committed to the total phase-out of new petrol and diesel car sales in 2030 but is currently reviewing the target regime to allow greater flexibility.
Manufacturers who fall short of their target can buy credits from competitors who exceed EV market share, or offset them against emission reduction elsewhere in the business.
Last year this allowed the industry to hit its 22% target despite vehicle sales of just below 20%.
