EV registrations hit record high as ECG drives demand

The new car market enjoyed its best performance in five years in September, with electric cars setting a new record for registrations.

A total of 72,779 new pure EVs were registered last month – an 29.1% year-on-year increase and the highest ever number registered in a single month.

The growth has been attributed in part to the Electric Car Grant (ECG) which offers up to £3,750 off a new EV, as well as manufacturers’ own discounts and special offers.

The data from the Society of Motor Manufacturers and Traders shows that in combination electrified vehicles – including hybrids and plug-in hybrids – took the largest share of the market in September.

As “new numberplate month” September is traditionally the strongest month of the year but this year’s performance is the best since 2020. Overall, the market was up 4.2% year-on-year, with all types of electrified models outperforming this growth.

The SMMT reported that models which qualify for the ECG – around a quarter of all available EVs – enjoyed greater growth than non-eligible cars. Registrations of grant-eligible cars were up 36% compared with 27% for non-eligible cars.

While only some EVs qualify for the official grant, many manufacturers, including Leapmotor, Suzuki, Toyota and Hyundai are offering their own equivalent discount to attract customer.

Mike Hawes, SMMT chief executive, said: “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 Electric Car Grant will help to break down one of the barriers holding back more drivers from making the switch – and tackling remaining roadblocks, by unlocking infrastructure investment and driving down energy costs, will be crucial to the success of the industry and the environmental goals we share.”

Despite the good news, EV registrations are still short of the ZEV Mandate target. Manufacturers are likely to avoid penalties thanks to measures such as borrowing from future years’ allowances or carbon trading. However, the year-to-date 22.1% market share is well short of the 28% set out in the mandate.

Paul Hyne, commercial director for transport at Lloyds, commented: “It’s encouraging to see EVs gaining ground during this key moment in the calendar. We’re seeing increased demand for used electric cars too, giving drivers the option to shift to greener transport at a lower price.

“Our figures show that once drivers switch to an EV, they are unlikely to go back, with 95% choosing another EV as their next car. However, to encourage more drivers to take that first step into cleaner transport, it’s crucial that the industry continues to invest in charging infrastructure and promotes the benefits of EVs.”