New car sales up in February, but action needed on EV infrastructure and VAT situation
4 March 2022 
New car sales shot up 15% in February, with 58,994 cars rolling out of showrooms, according to figures from the SMMT. However, despite the increase, sales for the month were still 25.9% below pre-pandemic levels.
Battery electric vehicles (BEVs) made up 17.7% of the monthly total, with 10,417 sold, while plug-in hybrids (PHEVs) took 7.9% with 4,677 sold.
According to SMMT Chief Executive Mike Hawes, Despite the apparent good news on the electrified front, with overall sales still down, action needs to be taken to keep zero emissions vehicles attractive in the long term via infrastructure investment and a change to the tax regime: “Despite February’s traditional low registration numbers, consumers are switching to EVs in ever-increasing numbers. More than ever, infrastructure investment needs to accelerate to match this growth.
“Government must use its upcoming Spring Statement to enable this transition, continuing support for home and workplace charging, boosting public chargepoint rollout to tackle charging anxiety and, given the massive increase in energy prices, reducing VAT on public charging points. This will energise both consumer and business confidence and accelerate our switch to zero emission mobility.”
The ongoing semi-conductor supply issue is also a concern, as NFDA Chief Executive Sue Robinson commented: “Supply-side constraints are likely to continue to remain a factor, driven by known macro events. The majority of franchised dealers are cautiously optimistic about the levels of consumer demand in 2022 despite the impact of external factors and are looking forward to a busy plate change month.”
AA Cars CEO James Fairclough observed: “The supply of new cars is now likely to be hit by further parts shortages, in addition to the widespread shortage of semiconductors, as global sanctions are imposed on Russia following its invasion of Ukraine. As a result, the supply of new vehicles for sale in the UK may continue to lag behind buyer demand for much of 2022. That’s why thousands of would-be new car buyers have switched their focus to the second-hand market instead.”
On the growing electrified share, he added: “With petrol and diesel prices spiking to record high levels this week, many buyers who were already considering a switch to electric power need no further convincing to choose one of the 140 plug-in models now available in the UK.
“Nevertheless EV sales are being held back by the same supply problems bedevilling the industry as a whole. Despite strong buyer demand, dealers cannot complete sales when the vehicles simply aren’t there to be delivered.
“The number of new vehicles rolling off UK production lines fell further in January, down to a level not seen since the depths of the Global Recession of 2009.”
Alex Buttle, co-founder of used car marketplace Motorway.co.uk, concluded: “Although new car registrations in February were up significantly, we shouldn’t get carried away just yet on a wave of optimism. In the current market, new car sales continue to be heavily restricted by a combination of factors: low levels of car production due to the ongoing microchip shortage and other supply chain issues, the prospect of rising inflation and the squeeze on the cost of living. Strong EV and plug-in registrations do at least show where the road to recovery lies. With further government investment into EV infrastructure planned, and more people embracing the idea of early switching, particularly with fuel prices reaching eye-watering levels recently, we should see electric car numbers continue on an upward trajectory.”