UK New Car Registrations (SMMT): August 2020: Though EV Adoption Continues To Grow (6.4% Market Share), We Still Remain At Early Stages In The Mass-Scale Migration To Emission-Free Motoring!

new car registrations smmt

The Lack Of EVs In The SMMT Best Sellers (August 2020) List, Is A Reminder That EV Mass-Scale Adoption Is Still At Very Early Stages!

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Before moving onto the latest results i.e. the August 2020 new car registration update, let us briefly remind ourselves of the July 2020 registrations update. 

Car Registrations SMMT
Car Registrations: July 2020 (credit: SMMT)

July 2020 witnessed a continued increase in the registration of battery-electric vehicles (BEVs), despite a continued slowdown in the sales of petrol and diesel internal combustion engine (ICE) cars.  Petrol new car registrations were up by just 0.3% in July 2020, compared to July 2019.  Diesel performed worse, with a 25.9% decline. Diesel market share decreased from 24.7% to 16.5% in July 2020, compared to July 2019. Petrol market share declined from 64.3% to 58% in the same period.  

BEV market share increased from 1.4% in July 2019 to 4.7% in July 2020. PHEVs (plug-in hybrid electric vehicles) also witnessed a similar increase from 1.1% in July 2019 to 4.3% in July 2020.

Car Registrations SMMT
Car Registrations: August 2020 (credit: SMMT)

The August 2020 new car registrations update from The Society of Motor traders and Manufacturers (SMMT), is a continuation of the trend so far witnessed in 2020 i.e. diesel cars further declining in market share between August 2019 to August 2020 from 25.5% to 16.4%.  

The same is the trend with petrol cars, witnessing a decline from 62.5% to 56.6% between August 2019 to August 2020.   In terms of registrations, diesel registrations have declined by 39.5% in August 2020 compared to August 2019, with petrol registrations decreasing 14.7% in August 2020. 

BEV market share increased from 3.4% in August 2019 to 6.4% in August 2020. PHEVs also witnessed a similar increase from 1.0% in August 2019 to 3.3% in August 2020.

Car Registrations SMMT
Car Registrations: August 2020 (credit: SMMT)

Year-to-date the overall sector continues to face a challenging trading environment, with new car registrations down 39.7%. Despite the continued increase of sales of electric vehicles, absolute volumes remain small, with BEV and PHEV combined, new EV car sales are still below the 10% market share threshold.

Also, the lack of BEVs and PHEVs on the SMMT August 2020 Best Sellers list, is a firm reminder that the despite all the progress, the adoption of electric vehicles is still at a nascent stage.

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World EV Day

This week celebrates the inaugural World EV Day, a day of not only celebration, but also a day of reflection, on what has been achieved to date, and what needs to be done, to enable mass-scale adoption of zero tailpipe emission electric cars.

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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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