Written by Kunal Sawhney, CEO, Kalkine

There has been a boom in the Electrical Vehicle (EV) market, and the latest report has revealed that the UK has surpassed half a million-milestone mark of electric cars sold during the month of June 2022. The car industry has been witnessing a severe supply chain issue and shortages of chips after the pandemic and the Russia-Ukraine war. But the demand for electric cars has shown steady growth and even outstripped supply for several years. Hence the numbers are encouraging once again. 2021 was the best year for new electric car sales, and if the sales growth momentum continues, 2022 could be a better one.

Electric car sales in the UK constitute around 12 per cent of the total car sales. According to the latest available data from the Society of Motor Manufacturers and Traders (SMMT), while gasoline and diesel engine car sales suffered a sharp decline during the month of May, Electrical Vehicle sales witnessed an increase of 17.7 per cent growth. The battery electric vehicles (BEV) made up one in eight new cars getting registered. There has been an increase in EV adoption as by 2035, there will be bans on petrol and diesel cars in the UK and EU.

EV Car companies are on a roll

According to the SMMT data, 224,011 EVs were manufactured by different manufacturers in the UK in 2021, which included battery electric vehicles (BEVs), hybrid electric vehicles (HEVs), and plug-in hybrid vehicles (PHEV). Almost every car maker in the UK has electric vehicles available or has plans for the next few years.

The major EV categories include Pure electric vehicles, HEVs, and PHEVs, and all big car brands, including, Nissan, Tesla, Kia, Hyundai, and Vauxhall, have all expanded their model lineups to include some or other electric models. Last year data shows that almost 50 pure-electric cars were available for sale at British car dealers. Though, Tesla Model 3 was the best-selling EV model in 2021, followed by Kia e-Niro and Volkswagen ID.3.

There are many companies that will be entering the EV market soon with their pure-electric models. Alfa Romeo’s Brennero is expected in 2023; Aston Martin has planned a Pure-electric sports car in 2025, followed by an electric SUV in 2025 or 2026. In the premium segment, Audi already has its various EV models in the market and has planned around another 14 new pure-electric models by 2025. Bentley will also be in the market with its pure-electric model by 2025, while BMW will be coming up with 4 new models in 2023.

Second-hand Electric car market also witnesses demand increase

It is not only the new car registration that has been witnessing a surge but the demand for second-hand EVs as well. Though the adoption of EVs is still in a nascent stage, and hence the supply of used electric cars is still very small. The supply chain issue and chip shortages acted as a catalyst for the secondhand car industry, and it has been reported that the press for zero-emission vehicles has raised the demand for second-hand electric cars.

SMMTs data shows that the first quarter of this year witnessed a 120 per cent increase in transactions for second-hand electric cars when compared to the first quarter of last year. There was just a 5.1 increase year-on-year in the overall sales of second-hand cars. Though, separate data has also shown that the UK remains the only second-hand car market in Europe where used prices continue to fall, with stock levels remaining high for the last one year. There has been an increase in used EV car sales, but it can further pick up the pace only when the new EV car market shows further growth.