September 27, 2021

EV sales to spiral further as auto industry eyes holiday season

Written by Kunal Sawhney, Kalkine Media

With the continuous focus on reducing the carbon footprint across the United Kingdom and the increased awareness amidst the individuals towards the climate change crisis, the uptake of electric vehicles (EVs) has been on a rise.

The larger inclination of people towards environment-friendly vehicles have typically amplified the technological advancements and innovative breakthroughs in the EV space that are very useful for the consumers.

The conventional automakers are also laying strong foundations through which they can introduce the so-called state-of-the-art vehicles as the Downing Street administration look forward to terminating the sale of new petrol and diesel fired passenger vehicles.

Consequently, the demand for battery electric vehicles (BEV), plug-in hybrid electric vehicles (PHEV) and hybrid electric vehicles (HEV) have shown remarkable surge in August of 2021. According to the car registrations data unveiled by the Society of Motor Manufacturers and Traders (SMMT), the sales of PHEVs have surged 72.1% in the corresponding month as against the sales registered in August 2020.

BEVs and HEVs have also shown significant improvement with the sales recording an annual growth of 32.2% and 45.7%, respectively, at a time when the overall sales volume in the month of August slipped to the lowest since 2013. On a year-on-year basis, the car sales witnessed a de-growth of by 22% largely due to the semiconductor shortages and supply chain constraints as a result of industry-wide limitedness of staff.

The sharp increase in the models of PHEVs has substantially supported the growth as consumers have a better range of choices. This has also bolstered the confidence of first time car buyers and the people who are considering owning an EV as their next vehicle.

The demand for PHEVs has materially outnumbered the demand for BEVs in the five out of six months after the government brought in the changes with regard to the Plug-in Car Grant. With the ever-expanding range of PHEVs and other variants as well, combined with the increased consumer spending in the last quarter of the year, the sales growth is likely to multiply further.

The sale of EVs is highly likely to grow on a sequential basis also as the market is still in its evolving stage with millions of consumers planning to consider an EV as the next option for the car purchase. The commencement of the holiday season will provide an additional cushion to the industry trying to battle out the extended issue of semiconductor shortages and pingdemic-led staff crisis that has developed a series of difficulties with the manufacturing, as well as the logistics division.

The year-to-date sales of passenger vehicles has jumped a little more than 20% as compared to the first eight months of the pandemic-laden 2020, however, the sales remain below if compared to the pre-pandemic period. Last month has been one of the slowest for the automakers as registrations from the business, private and fleet buyers also marked a double-digit drop as against the same period of previous year.

Going ahead, the registrations of EVs are likely to continue an uptick with the expanding know-how about green energy and the country’s commitment of achieving net zero status.