Has It Been A Promising Start For BEVs In 2019?

Sales of battery electric vehicles (BEV) have demonstrated a continued and wider adoption of electric cars in the UK. In February 2019, 731 BEV’s were registered, compared to 355 for the same period the previous year, an increase of over 105%. Year-to-date, the sale of BEV’s has increased by 108.6%. Despite these promising indicators, electric car adoption is still at early stages with BEV total market share of less than 1% in the UK.

Has it been a promising start for PHEVs in 2019?

Sales of plug-in hybrid electric vehicles (PHEV) have increased in February 2019 compared to the same period in 2018. However, the increase of 15.4% is much lower compared to the uptake of BEVs. Plug-in hybrids continue to command a higher market share at 1.5% year to date of total new registrations (3,641 new PHEV registrations year-to-date in 2019).

We believe the reduction in sales volume of PHEVs is due to an increased portfolio of BEVs introduced into the UK market and the negative impact from the announcement by the government in 2018 in regards to grants for plug-in hybrid electric vehicles. We envision that new registrations will continue to favour BEVs compared to PHEVs, as the EV market continues to develop and introduce competitive 100% battery electric vehicles.

Has it been a promising start for conventional hybrids in 2019?

Not surprisingly, sales of hybrid petrol-electric vehicles has continued to perform well. Though these vehicles are not ‘plug-in’, they remain a far better choice for driving, than non-hybrid vehicles, given the lower negative environmental impact of hybrid cars and greater fuel efficiency. So far in 2019, nearly 10,000 hybrid petrol-electric vehicles have been registered commanding 4% market share. The sale of hybrid diesel-electric vehicles have continued to drop substantially with 92% reduction compared to the same period last year.

So is the overall picture for alternative fuelled cars positive so far, in 2019?

Certainly 2019 has been a good start for plug-in and hybrid cars with 15,535 registrations as of end February 2019. This is an increase of 28.5% compared to the same period in 2018. Putting this is context with the sale of all cars registered so far in 2019, to include internal combustion engine (ICE), alternatively fuelled cars have performed better compared to the overall market, which declined by 0.6%. We believe that this trend will continue to develop and the market share and growth of plug-in cars and hybrids will continue to grow at the expense of cars with only petrol or diesel drivetrain.

What is the total number of hybrid, BEV and PHEV vehicles on UK roads?

According to the SMMT, there are now nearly 200,000 plug-in vehicles on UK roads, driven by the increased choice of models available for EV consumers. The total number of alternatively fuelled vehicles to include hybrids on UK roads is 620,000.

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Ashvin Suri

Ashvin has been involved with the renewables, energy efficiency and infrastructure sectors since 2006. He is passionate about the transition to a low-carbon economy and electric transportation. Ashvin commenced his career in 1994, working with US investment banks in New York. Post his MBA from the London Business School (1996-1998), he continued to work in investment banking at Flemings (London) and JPMorgan (London). His roles included corporate finance advisory, M&A and capital raising. He has been involved across diverse industry sectors, to include engineering, aerospace, oil & gas, airports and automotive across Asia and Europe. In 2010, he co-founded a solar development platform, for large scale ground and roof solar projects to include the UK, Italy, Germany and France. He has also advised on various renewable energy (wind and solar) utility scale projects working with global institutional investors and independent power producers (IPP’s) in the renewable energy sector. He has also advised in key international markets like India, to include advising the TVS Group, a multi-billion dollar industrial and automotive group in India. Ashvin has also advised Indian Energy, an IPP backed by Guggenheim (a US$ 165 billion fund). He has also advised AMIH, a US$ 2 billion, Singapore based group. Ashvin has also worked in the real estate and infrastructure sector, to including working with the Matrix Group (a US$ 4 billion property group in the UK) to launch one of the first few institutional real estate funds for the Indian real estate market. The fund was successfully launched with significant institutional support from the UK/ European markets. He has also advised on water infrastructure, to include advising a Swedish clean technology company in the water sector. He is also a member of the Forbury Investment Network advisory committee. He has also been involved with a number of early stage ventures.

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