Maria Bengtsson, mobility leader at EY UK and Ireland, has highlighted that figures released yesterday from the SMMT showed fleet sales saw another month of modest growth, with a 1.8% year-on-year increase.
She said: “EY’s latest report in collaboration with Eurelectric – the federation of the European electricity industry – revealed that fleet electrification could help unlock significant operating cost savings for businesses, providing further rationale and incentives for companies with large fleets to transition to cleaner and greener vehicles.
“Retail sales continued their recent momentum in February, with a significant 17.6% year-on-year rise, which is positive news for automakers given retail is the more profitable sales channel.”
Bengtsson said that the 7.2% rise in car sales is testament to the resilience of the UK automotive businesses.
She acknowledged, however, that the recent geopolitical disruption could create barriers to further growth over the next weeks and months.
She said: “Battery Electric Vehicle (BEV) registrations saw 2.8% year-on-year growth in February – up from the marginal 0.1% rise seen in January.
“The UK’s BEV market share is 24.2% this year-to-date, up from 20.6% in January but still significantly behind the 33% Zero Emissions Vehicle (ZEV) Mandate target for 2026.
“Although the UK continues to see greenshoots in its transition to cleaner and greener transport as well as growing consumer interest in alternative powertrain technologies, disruption to global supply chains due to conflict in the Middle East could impact production and prolong lead times, limiting the extent of any short-term rise in registrations and market share.”
Plug-in hybrid electric vehicle and hybrid sales saw 43.5% and 3.3% growth respectively, which Bengtsson said proves the rise in popularity for alternative powertrain technologies.
She said: “In contrast, diesel sales declined by 3.8% year-on-year in February.
“However, petrol sales bucked the recent trend with 5.2% year-on-year growth last month.
“Policymakers will be monitoring this trend closely given the slowdown in BEV sales growth over the last couple of months and the implications for whether BEV targets can realistically be met this year.
“However, ongoing geopolitical events and the impact on oil and gas prices may dampen petrol and diesel sales in the next few months.”
