Electric car sales forecast cut – as trade body reveals ‘overriding concern’ for industry | Business News

Sales of electric cars in the UK are expected to be lower than previously thought this year due to weaker demand.

The Society of Motor Manufacturers and Traders (SMMT) said it now estimates that pure electric vehicles will have an 18.5% share of the market in 2024.

The trade body previously forecast that the figure would be nearly 20%.

The SMMT’s chief executive Mike Hawes said weaker demand for electric vehicles (EVs) from private buyers was an “overriding concern” for the industry, despite “generous” discounts from manufacturers.

He added: “More people than ever are buying and driving EVs but we still need the pace of change to quicken, or else the UK’s climate change ambitions are threatened and manufacturers’ ability to hit regulated EV targets are at risk.

“Achieving market transition at the pace demanded requires greater support for consumers and, with the all-important new number plate month of September beckoning, action on incentives and infrastructure is needed now.”

The SMMT also downgraded its overall forecast for new car registrations this year, from around 1,984,000 to 1,968,000.

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More than 147,500 new cars were registered last month, up 2.5% from July 2023 – the 24th consecutive month of year-on-year growth.

The trade body said the most popular car model to sell last month was the Kia Sportage, which is also the second most-sold vehicle so far this year after the Ford Puma.

The SMMT recently called on the government to cut taxes on electric vehicles to help reverse flagging sales and help the industry hit its climate goals.

It comes amid growing concern in the industry over slowing demand for electric vehicles.

Earlier this year US giant Tesla and its Chinese rival BYD both reported falls in sales.