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This growth is six times higher than the average sales growth of electric cars globally at 31% in 2020, putting the UK in fourth place out of 26 countries in the study (see table below).
Worldwide growth in sales of electric cars has outpaced global car sales (including petrol and diesel) which fell by approximately 15% to 64 million in 2020, down from 75 million in 2019**.
Less than a fifth (19%) of countries saw sales of electric cars fall during the first year of lockdown, including Japan which fell 31% and Canada, down 20% in 2020.
The UK was marginally behind Germany which also had a considerable increase in electric car sales, rising 207% from 63,000 to 194,000 in 2020.
The UK Government has set goals of banning the sales of new petrol and diesel cars by 2030 and hybrids from 2035. Despite this, the UK’s EV incentives are not particularly competitive in comparison to other countries, particularly in Europe. This could risk holding the UK back in the race to net zero, if the costs of electric cars are not reduced further.
Although the Government has provided nearly GBP£1.3bn in incentives for ultra-low emission vehicles since 2011, there have been cutbacks over the years. Previously, a grant of GBP£5,000 was available and there was no cap on the price of the vehicle purchased. However, now, grants only cover up to GBP£2,500 , with the purchase price limited to GBP£35,000.
There is also a grant for electric charging points which funds 75% (up to GBP£350) of the installation costs of charging points at domestic properties in the UK.
David Kendrick, Partner in our Manchester office, UHY’s member firm in the UK, comments: “It’s encouraging to see such a high growth rate in electric car sales in the UK. It’s one of the top performers, far ahead of other major economies such as the US.”
“However, petrol and diesel cars still dominate the UK’s automotive market, meaning electric car sales must grow much faster if we’re going to meet our ambitious targets. In order to facilitate this growth, a commitment to creating a vast amount of charging points over the next few years will be critical.
“It will also be reliant on the National Grid being able to provide enough energy to fuel this transition to electric cars and the extra demand this will create.”
“The Government needs to think about boosting EV incentives rather than reducing them. Unfortunately, the decision to slash grants for electric cars will have put them further out of reach for some people. However, it’s not too late for more benefits to be introduced.”
* Battery electric passenger cars only, excludes hybrids
** Statista – number of cars sold worldwide
