UK battery EV sales hit 1 million mark, but help needed - SMMT

(Reuters) - Britain sold its one millionth battery electric vehicle (BEV) in January despite a drop in private buyer demand, an industry body said Monday, calling on the government to provide relief to buyers in next month's budget.

Overall new car sales in January rose 8.2% to 147,876 units, the best since 2020, buoyed by strong demand in the fleet market, The Society of Motor Manufacturers and Traders (SMMT) said.

Total BEV sales for the month rose 21% to 20,935 units, with fleet and business demand for BEVs up 41.7% but registrations by private buyers down 25.1% – an ongoing trend that will undermine Britain’s ability to deliver net zero, SMMT added.

Ahead of next month's budget, the industry body called for Britain to support consumers by temporarily halving VAT on new BEV purchases.

"Manufacturers have been asked to supply the vehicles, we now ask government to help consumers buy the vehicles on which net zero depends,” SMMT CEO Mike Hawes said in a statement.

While total new car sales forecast for 2024 is now estimated to be 4,000 units higher, the BEV forecast has been reduced to a market share of 21% over the year, down from 22.3% anticipated in October.

(Reporting by Prerna Bedi in Bengaluru; Editing by Eileen Soreng and Varun H K)