Sales of battery electric vehicles (BEVs) have mainly driven the first growth in five months in the UK’s new car market during August, Kallanish reports.

Data released by the Society of Motor Manufacturers and Traders (SMMT) on Monday shows overall new car registrations were up at 1.2%. Although marginal, the growth is the first since February and in a month that is typically the second quietest of the year.

BEV uptake grew 35.4% on-year last month to 10,006 units – a share of 14.5% of all sales. These sales compare to a 12.3% decline in diesel registrations and a 7.5% increase in petrol car sales. Yet, SMMT warns that BEV growth is slowing, with a year-to-date increase of 48.8%, compared to a 101.9% growth at the end of Q1.  

Meanwhile, registrations of plug-in hybrid electric vehicles (PHEVs) dropped 23.1% to 3,884 units and a 5.6% market share. Hybrid electric vehicles (HEVs) registrations declined 0.7% to 8,007 units and an 11.6% market share. These figures translate into 21,897 new electrified vehicles joining UK roads – an increase of 6.8% on-year and a market penetration of 31.7%.

SMMT ceo Mike Hawes welcomes the marginal growth but warns that “spiralling energy costs and inflation on top of sustained supply chain challenges are piling even ore pressure on the automotive industry’s post-pandemic recovery.” He notes September, traditionally a bumper time for new car intake due to changes in number plates, “will be the true barometer of industry recovery.”

The trade body says new UK Prime Minister Liz Truss will face “immense challenges” to mitigate the “crippling effect” of skyrocketing energy prices on businesses and households.

“Reducing the cost of doing business must be a priority,” for the new government, says Hawes. “Growth, however, will depend on a competitive business framework which stimulates investment, drives innovation and positions the UK at the forefront of global issues, not least the race to net zero. UK Automotive is well positioned to deliver these ambitions and the high value jobs that accompany them,” he adds.