Blow to EVs as sales DROP & new figures show worrying trend for major car brands
EV SALES saw a worrying drop in October as new figures indicate consumer demand could be waning.
And manufacturers now face a real risk of missing targets requiring them to increase their zero-emission car sales from January.
According to the latest industry data from the Society of Motor Manufacturers and Traders, just one in four new battery cars have been purchased by private buyers.
And while the number of car registrations across all fuel types grew 14.3 per cent last month, it seems interest in EVs is dwindling.
Figures show there was a total of 153,529 car registrations in October – yet EV uptake isn’t accelerating as fast as manufacturers need it to in order to avoid penalties earmarked for 2024.
EV-uptake did grow for a 42nd consecutive month in October, but private registrations accounted for fewer than one in four EVs bought – with large fleets fuelling the majority of sales.
EVs made up only 15.6 per cent of all car sales – which is a long way short of the 22 per cent required from next year when the Zero Emission Vehicle (ZEV) mandate is introduced.
These rules state that major car brands that fail to meet the ZEV’s sale targets from next year will face penalties.
These fines amount to £15,000 for every car short of the target and £9,000 per every van, before the van payment increases to £18,000 for the rest of the regulation’s timeframe.
Car makers could even be forced to purchase EV credits from other brands, such as Tesla.
The SMMT reacted to this data by calling on the Chancellor to help boost EV sales by introducing incentives and support infrastructure investment in the upcoming Autumn Statement.
As reported by the Daily Mail, SMMT chief executive Mike Hawes said that the success of EVs ultimately hinges on the Government.
He said: “The Autumn Statement is a key opportunity for government to introduce incentives and facilitate infrastructure investment.
“Doing so would send a clear signal of support for drivers, reassuring them that now is the time to switch to electric.”
In fact, with the dwindling demand for EVs in recent months, the SMMT have been forced to revise their market forecast for 2023 and 2024.
However, there’s good news for potential new EV customers with Vauxhall set to launch an affordable ‘entry-level EV’ to combat the rising prices of electric cars for customers.
The car firm’s new development will be priced from around £22,000, according to the boss of parent brand Opel.
He states that it would bring production costs down, enhance interior space and lower vehicle weight.
This comes after Mercedes-AMG revealed development of its first electric sports car as an alternative to their legendary Mercedes-AMG GT.
The Vision AMG will arrive in 2025 complete with innovative, UK-developed drivetrain technology.
The stunning electric motor will replace the GT 63 with prototypes expected to start hitting the road in the coming months.
Boasting sporty high-tech seamless design and breath-taking proportions, the Vision AMG has a futuristic character.
And Ferrari could be jumping on the EV bandwagon as well, with the legendary sports car maker ready to launch its first ever EV.
The luxury car giant is also planning to open a new facility in Italy to produce its new all-electric models, with boss Benedetto Vigna confirming that the company was on the right track in developing a new electric car.
He told reporters: “Ferrari’s first fully electric model project is going as planned but for some processes, we are even ahead of schedule.”