Why Has The UK Had Its Best Ever Month For Electric Cars?

In a year filled with concerns, headwinds and a tremendous gamble, the electric vehicle market has not only managed to survive but has reached record highs.

According to the Society of Motor Manufacturers (SMMT), the number of battery electric cars has increased by nearly 30 per cent, nearly matching conventional and plug-in hybrid numbers combined.

Together, there have been more cars with some form of electric power sold in Britain this month than petrol or diesel cars, and it is a credit to the whole supply chain from raw material suppliers to dealers that EVs have outperformed what has already been a strong month for new car registrations.

To understand why, it is important to look at one of the most obvious factors, as well as a number of elements that have also potentially played their part in this success that have also played a significant part.

The Electric Car Grant

In the interest of following Occam’s razor and looking for the answer with the fewest variables, the answer is likely to be found with the single biggest variable that changed this year, even if nobody expected it to work this early.

The Electric Car Grant, a two-tiered government discount that could save a driver up to £3750 on any car that costs £37,000 or less, was subject to a significant amount of scepticism when it was first unveiled in July.

However, the industry and public perception of the scheme changed as soon as cars started to qualify for the higher discount rate. The SMMT noted that models that qualified for the ECG outpaced the overall market.

This was most notable with the Ford Puma Gen-E, which was the second best-selling car in Britain, behind only the hybrid and plug-in hybrid Kia Sportage.

According to the Government, 20,000 people have taken advantage of the grant, vindicating a belief that a huge wave of demand was being blocked by cost considerations.

Another aspect that must be noted is that whilst only a quarter of the BEV market qualifies for the ECG, there is a rising tide effect where other manufacturers have either cut prices in expectation of qualifying, to complement the government grant, or to remain competitive.

Greater Choice And Greater Competition Than Ever

Looking at the list of most popular cars registered in September, and one aspect that is particularly amazing is that every single manufacturer is different, and there is a broad variety available for any driver who wants to make the switch to an EV.

Alongside popular models from the likes of Vauxhall, Volkswagen and Ford, there was also the resurging Chinese-owned MG, as well as vehicles by the Chinese manufacturers Jaecoo and BYD.

There are more options at more affordable prices than ever before, many of which come with additional features and equipment as standard, such as extended range batteries, charging cables, discount rates at certain public charging networks and even a grant towards a home charging station.

Reflections Of A False Twilight

Another element that has perhaps increased the surge in the EV market is that the successes found earlier in the year were tempered by the dramatic collapse of what was the world’s largest EV manufacturer.

A reported slowdown last year turned out to be, according to The Drive, a specific and dramatic issue with Tesla, and this year appears to have gotten even worse for them in the EV market.

Their worldwide sales plunged, and in the United States, their overwhelming dominance of the market has dropped from a height of 80 per cent to just 38 per cent, with a 22 per cent fall in registration in Europe and a ten per cent drop worldwide.

Part of this is the result of brand self-sabotage; the Cybertruck was the apotheosis of everything that had gone wrong with the brand, the leader of the company had an incalculable number of PR disasters, and its self-driving software was ruled to be partially at fault for a fatal car accident in a truly damning verdict.

Beyond this, Tesla had failed to catch up with the future, and with dozens of competitors offering more affordable cars that are just as capable, the scale of the company’s collapse in the EV market created the false perception of a market meltdown.

The Choice Of A New Generation Of Leases

Often, the direction of the market can be seen through the fleet market, and the overwhelming majority of the BEVs bought were by businesses to be used in fleets or offered as company cars.

This can be correlated with the shift away from diesel cars, the typical engine of choice for fleet cars, and highlights that businesses see them as the future of commuter transport.