The new car market saw a 14 percent growth, making last February the best one in 20 years, according to the latest figures.
Around 85,000 brand new cars were sold in February, showing a 14 percent surge compared with February 2023, states the Society of Motor Manufacturers and Traders (SMMT).
This is the highest figure for February since 2004, when over 91,000 new cars got registered.
February usually is a quiet month for sales as March brings new number plates, which triggers an increase in buying.
The SMMT has once again asked for “fairer” treatment towards electric cars in taxation, as they’re not selling well among private buyers.
Just 18.2 percent of all new electric cars sold in the first two months this year went to private owners, while the rest was bought by companies due to tax benefits. They helped drive a total increase in demand of 21.3 percent.
The SMMT is requesting Chancellor Jeremy Hunt to reduce VAT by half on new electric cars, re-think about introducing vehicle excise duty for electric cars, and cut down VAT on public charging to match with home charging.
Mike Hawes, the Chief Executive, commented: “The new car market’s ability to deliver growth continues with its best February for 20 years.”
He added “This week’s Budget is an opportunity to ensure that growth is greener.”
“Tackling the triple tax barrier as the market embarks on its busiest month of the year would boost EV demand, cutting carbon emissions and energising the economy.”
“It will deliver a faster and fairer zero emission transition, putting Britain’s EV ambition back in the fast lane.”
Ian Plummer, commercial director at online vehicle marketplace Auto Trader, said: “Year-on-year growth in EV sales is encouraging but this is thanks to buoyant fleet sales, as growing numbers of drivers take advantage of benefit in kind and salary sacrifice schemes to overcome the electric upfront price barrier.”
“With the 22% Zero Emission Vehicle (ZEV) mandate target of all new car sales to be electric now in effect, some manufacturers are turning to substantial offers to stimulate flat retail demand and entice potential car buyers, and our data shows it’s working.”
“At the end of February, one in five new car inquiries sent via Auto Trader were for EVs thanks to a few heavily discounted models.”
Under the ZEV mandate, at least 22 percent of new cars sold by each manufacturer in the UK this year must be zero-emission, which generally means battery EVs.
The threshold will rise annually until it reaches 100 percent by 2035.
Manufacturers that fail to abide by the rule or make use of flexibilities such as trading allowances or carrying them over from previous years will be required to pay the Government £15,000 per polluting vehicle sold above the limits.
In September last year, Prime Minister Rishi Sunak delayed the ban on the sale of new petrol and diesel cars and vans in the UK from 2030 to 2035.
Alex Buttle, who co-founded the used car comparison site Motorway.co.uk, stated: “Private car buyers urgently need more support to switch to electric.”
“If the Government announces incentives for prospective EV drivers as well as plans to improve the charging infrastructure in the Budget tomorrow, sales could really start to power up.”
