Surge in EV demand helps new car market grow 23.5% in November

Tesla electric vehicle being charged (PA)

A jump in demand for electric vehicles helped the UK new car market grow 23.5% in November, according to data from the Society of Motor Manufacturers and Traders (SMMT), as the Tesla Model Y became the second best-selling car of the month, with almost 4,000 vehicles sold.

Over 55,000 battery, plug-in and hybrid electric vehicles were registered during the month, a 32% increase on last year as EVs climbed to hit a one-third share of the total car market in the UK, with the Model Y becoming the ninth most popular car of the year with almost 25,000 vehicles registered since January.

The surge in EV registrations comes despite the removal of the road tax exemption for new EVs by Chancellor Jeremy Hunt in his Autumn Statement, a move which could add upwards of £500 to their running costs.

Hunt told the House of Commons: “Because the OBR forecasts half of all new vehicles will be electric by 2025, to make our motoring tax system fairer I have decided that from April 2025 electric vehicles will no longer be exempt from Vehicle Excise Duty.”

The move, which is set to be implemented in April 2025, has sparked frustration among EV drivers facing higher costs, and had raised fears that drivers looking to switch to environmentally friendly vehicles will be put off the move.

SMMT boss Mike Hawes said: “Recovery for Britain’s new car market is back within our grasp, energised by electrified vehicles and the sector’s resilience in the face of supply and economic challenges.

“As the sector looks to ensure that growth is sustainable for the long term, urgent measures are required – not least a fair approach to driving EV adoption that recognises these vehicles remain more expensive.”