Car industry body the Society of Motor Manufacturers and Traders (SMMT) has released its monthly sales figures for the UK new car market, and it says that the budget has had a damping effect on demand for EVs.
The overall market was down 1.6% on November 2024, but despite the sales of electric vehicles being up 3.6%, the SMMT says that it was the weakest month in two years for growth in electric take-up.
Looking at the year to date figures, EV sales are up 26% on the first 11 months of 2024, so the November figures do seem to indicate a drop in enthusiasm for buyers going electric.
Ford’s Puma remained at the top of the list yet again, the lack of the EV option on the car not doing a great deal to slow down its sales. New Chinese carmakers also enjoyed a bumper month despite the overall market gloom, growing their market share to over 5% for the year to date.
SMMT boss Mike Hawes had some strong words on encouraging buyers into electric cars, however. “Even in a fragile market, zero emission vehicle uptake continues to rise, which is exactly what we need,” he said.
“But the weakest growth for almost two years – ahead of government announcing a new tax on EVs – should be seen as a wake-up call that sustained increase in demand for EVs cannot be taken for granted. We should be taking every opportunity to encourage drivers to make the switch, not punishing them for doing so, else the ambitions of government and industry will be thwarted.”
Ford’s UK boss Lisa Brankin had warned ahead of the budget that leaks and discussion around electric vehicles was already having an impact on sales at her company, with customers cancelling orders because of the uncertainty around EV policy.
Chancellor Rachel Reeves announced during her budget speech on 26 November that she would be extending the electric car grant scheme until 2030 and pumping another £1.3bn into the pot for it, but at the same time announced a new pay per mile tax on electric cars for 2028 and sweeping changes to the Motability scheme that leases cars to people with disabilities, which represents hundreds of thousands of cars on the road.
Electrifying.com founder Ginny Buckley said that people were being put off because of the uncertainty. "Buyers are keen to go electric, but they're confused by the messages they're getting. The government is trying to be Father Christmas and Scrooge at the same time, giving out the electric car grant on the one hand but on the other penalising those who make the switch with the pay per mile scheme."
Ford's Puma remains at the top of the sales charts, despite the electric version having sold out 
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