EVs have taken more than a fifth of new car registrations as overall market contracts by 2.5 per cent to 139,345 units according to the latest figures for the Society of Motor Manufacturers and Traders (SMMT).

Both hybrid electric vehicles (HEVs) and plug-in hybrids (PHEVs) recorded volume growth and saw their market shares rise to 13.2 per cent and 9.0 per cent respectively, whilst battery electric vehicle (EV) registrations, meanwhile, continued recent growth trends, with volumes up by 41.6 per cent year on year to take a 21.3 per cent of the market share.

Despite the increase in the month, the EV market share still remains just short of the 22 per cent target set by government for last year, and even further behind the 28 per cent requirement for 2025. This gap between demand and ambition places pressure on the review of the Vehicle Emissions Trading Scheme.

The SMMT estimates that manufacturer investment both in new products and, last year, of more than £4.5bn worth of discounts has helped many drivers make the switch, but more consumers are still reticent, looking for greater encouragement from government and elsewhere. Private retail buyers still lack a meaningful fiscal incentive to buy an EV and, moreover, the application of the Vehicle Excise Duty ‘Expensive Car Supplement’ (ECS) to EVs in just two months many well made the situation worse.

Mike Hawes, SMMT chief executive, said: “The threshold for the ECS – dubbed the ‘luxury car tax’ when launched – has remained unchanged at £40,000 since it was set eight years ago, when the overall market was 30 per cent larger than today and EVs barely featured. With more than twice as many EVs registered this January than in the whole of 2017, raising the eligibility threshold for EVs – or exempting them from the ECS entirely – would send the message that EVs are essentials, not luxuries, and ensure vehicle taxation remains fair and appropriate for today’s market conditions.”

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