Prediction: Electric vehicles will represent quarter of all new UK car sales in 2023

13/01/2023

Electrification

Battery electric vehicles (cars and light vans) will account for nearly a quarter of all new registrations in the UK this year at 448,000 vehicles, EV leasing company DriveElectric predicts.

The estimate is based on the company’s own forecourts and represents a significant increase on the 267,203 registered in the UK in 2022.

Mike Potter, DriveElectric managing director, says: “EV registrations will continue to increase in 2023, as the industry recovers from challenges such as the semiconductor shortage, and as yet more new EV models come to market.

“Businesses will continue their enthusiastic transition to EVs, however the risk is that retail demand will be impacted by cost of living concerns.”

DriveElectric said the spike in registrations will be due to BEV availability continuing to improve, following ongoing vehicle shortages primarily due to semiconductor supply issues over recent years.

Car and van manufacturers will also have more capability to produce and deliver vehicles as more EV factories open around the world.

More BEV brands are due to be launched in the UK this year too, particularly new Chinese brands like Nio, Aiways, Great Wall’s Ora brand, Xpeng, Lynk & Co and BYD all looking to launch here.

DriveElectric said other key factors for continued growth of the BEV market include the continued expansion of public charging networks, interest in solar and vehicle-to-grid technology and benefit in kind (BIK) rate increase confirmation until April 2028.

Zero Emission Vehicle Mandate

Looking further ahead, a Zero Emission Vehicle Mandate is due to be introduced by the UK government from 2024.

While full details on this mandate are still unknown, the overall aim is to mandate manufacturers to sell an increasing proportion of EVs each year in the lead up to the UK's 2030 ban on new petrol and diesel car and van sales.

From 2025 onwards, DriveElectric is predicting the BEV market will increase to around 50% of new cars and light vans.

Smart Transport National Conference 2023

The UK’s largest two-day conference for senior private and public sector transport leaders and policymakers to work together to transform the UK’s transport network and achieve net zero will take place on 21 & 22 November 2023, The Eastside Rooms, Birmingham.

The high-level conference will bring together senior transport leaders who help shape transport policy and deliver its infrastructure.

It aims to promote best in class initiatives from the private and public sector and bring people together through networking, knowledge transfer and discussion and is seen as UK's largest, trusted and most credible transport conference to facilitate public and private sector collaboration.

The agenda will deliver a speaker faculty of 80+ expert speakers, including senior transport politicians, from the UK and beyond. And we expect an audience of 300+ delegates to attend.

Speakers come from authorities and organisations such as: The Department for Transport, England’s Economic Heartland, Birmingham City Council, Transport for West Midlands, Midlands Connect, TIER Mobility, CoMoUK, Lambeth Council, Cambridgeshire and Peterborough Combined Authority, Enterprise Holdings, FedEx, Worldline and Cornwall Council.

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November 2022 conference video highlights