Electric Car Sales increased 172% year on year as overall car sales hit 9 -year low

Growing market share

Declining market

The car market has been hit hard with it suffering a sharp decline. The new car market shrank by -1.6% in October with just 140,945 cars registered, the lowest level seen in nine years. The new lockdown introduced at the start of November is set to hit the sector even harder and it will likely be a grim picture in the new year.



The EV market is set to double in 2020 and continue to grow next year as the wealthy continue to be less impacted by the financial crisis caused by the pandemic. The increase in EV sales will be good news for the UK government as it presses ahead with banning the sale of all new petrol, diesel, and hybrid cars in 2030.

EV shortage?

A new report released by campaign group Transport & Environment has hinted that the UK could face a shortage of Evs in 2021 due to car manufacturers favouring production for markets in the European Union.

Despite sales increasing in the UK, car manufacturers could favour the EU due to a lack of EU-style emissions regulations being available in the UK following the end of the Brexit transition period on January 1^st, 2021.

In the EU, carmakers have to meet a per-car average emissions level, or risk being hit with fines. However, after the UK’s exit from the EU, this may cease to be the case, meaning car makers could prioritise selling their plug-in wares within the EU to meet the regulations.

Under the EU regulations, car manufacturers will be fined if the average emissions of their cars sold throughout 2021 is above 95g of CO₂ per kilometre. This is down from 122.4g/km last year.

The study estimated that unless similar legislation is drawn up in the UK, the country could see a drop of 20% in the number of electric vehicles sold next year, compared with the number expected to be sold if the EU regulations still applied.

Spanner in the works for the 2030 target?

If no new legislation is introduced by the UK Parliament by January 1^st car manufacturers will shift their focus to the EU, a move that could put a serious dent in the UK governments ambition for replacing all petrol, diesel and hybrid cars with Evs.  

“Electric car sales are booming thanks to emissions standards. Next year, one in every seven cars sold in Europe will be a plug-in. European manufacturers have Evs to sell, but from January they’ll have no incentive to sell them in the UK unless the government requires them to do so.

‘The electric car is becoming mainstream, but we risk turning off the tap in Britain. Carmakers will prioritise EV sales in markets where laws and tax breaks encourage them most, but the UK’s proposed standards are too weak and maybe too late. The government needs to quickly introduce regulations equivalent to the EU’s in 2021, or demand for electric cars will outstrip available supply and drivers will be left with long waits to secure their new electric car which will be more expensive,” said Greg Archer, UK director of Transport & Environment. 

Further Reading

Electric Car ownership must rise 11,000% for the UK to hit Net-zero target

What do Energy Supply companies need to consider when selling Electricity to EV owners?

5 Ways Energy Suppliers Can Help EV Owners

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Through our energy market consultancy services, and the software we’ve developed, we’re supporting new UK electricity and gas suppliers get set up and start supplying.

For more information on how to start and manage an energy company, get in touch with Dyball Associates today.