Sales of electric and plug-in hybrid cars have overtaken petrol-only registrations for the first time, in a month that also saw China’s big three exporters capture one in seven of all new cars sold in the UK.

June’s figures mark a watershed for the British motor trade. After a spring of record pump prices and with electric car prices falling in an increasingly crowded marketplace, registrations of zero-emission electric vehicles rose 35 per cent to almost 63,950, giving battery-powered cars 30 per cent of the market.

Plug-in hybrids, which run primarily on battery power with a petrol engine in reserve, added a further 26,702 sales, up 25 per cent year on year, for a 12.5 per cent share. Between them, the two plug-in categories comfortably outsold pure petrol cars, whose 84,541 registrations pushed their market share below 40 per cent for the first time, to 39.7 per cent.

The balance was made up of self-charging hybrids, on 14 per cent, and diesel, which continues its chronic decline in the wake of environmental and regulatory clampdowns, at just 3.8 per cent of new sales, according to industry figures compiled by the Society of Motor Manufacturers and Traders.

The month’s other defining trend was the pace at which Chinese manufacturers are winning British buyers across every fuel type, with pricing that undercuts the legacy carmakers. In a market of more than 213,000 registrations, up 11.4 per cent, the three biggest Chinese exporters sold over 30,000 vehicles between them, taking more than 14 per cent of the market.

MG, the heritage British marque now owned by Shanghai Automotive, claimed 4.9 per cent, outselling Toyota, the world’s biggest carmaker, as well as Korean rivals Kia and Hyundai. Chery, which recently signed a deal to build some of its models at Nissan’s Sunderland plant, took 6.4 per cent across its Jaecoo and Omoda brands. BYD, China’s largest carmaker, accounted for just shy of 3 per cent.

Many in the trade believe a tipping point has been reached, with electrified vehicles now mainstream and increasingly available on the used market, even if plug-in motoring remains less convenient for the two in five motorists unable to charge cheaply at home. Public charging costs and infrastructure, tracked by Zapmap, remain the key barrier for households without a driveway.

Nick Williams, managing director of the transport business at Lloyds Banking Group, said the affordability picture had shifted markedly over the past year.

“Used electric cars are now generally cheaper than their petrol equivalents and the second-hand market grew by around a third in the first quarter,” he said. “For households that can’t justify a new electric car at list price, the growing pool of used stock is a route in.”

That echoes record used electric car sales in the first quarter, when second-hand EV transactions rose by nearly a third.

“The other visible shift is on running costs,” Williams added, “with pump prices having swung by more than 20p a litre and home charging tariffs having stayed broadly stable.”

Jamie Young

Jamie is Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops.

When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders.