This year’s slowdown in the UK plug-in electric vehicle market is expected to continue into 2023, EV charging infrastructure company Pod Point Group said in a market update Nov. 21.
UK plug-in vehicle registrations grew by 76% between 2020 to 2021, fell to 26% in the first half of 2022 and slowed to 7% in the four months to Oct. 31, according to SMMT data.
The trend indicated a total market for of plug-in vehicles of 350,000 in 2022 and 375,000 in 2023, Pod Point said.
“Whilst it is today difficult to predict the outcome for 2023, we are prudently assuming that these supply chain and macroeconomic issues extend into 2023,” it said.
Domestic charging equipment orders had benefited from a rush to install ahead of the suspension of government-funded grants on March 31. This change remained a factor in the market, it said.
Longer term, the company expects UK plug-in vehicle registrations to return to rapid growth as supply chain restrictions ease and the general economy recovers.
“We fully expect the UK to achieve its goal of banning new internal combustion engine cars by 2030, and hence foresee strong growth in demand for charging infrastructure over the next decade and beyond,” it said.
Year to end-October data from SMMT show total UK vehicle sales of 1.343 million, of which 43% were gasoline, 5% diesel, 19% “mild hybrid EV” (gasoline and diesel) and 15% battery electric vehicles.
S&P Global Commodity Insights’ monthly EV Essentials report showed EU electric vehicle sales rebounding in September from two months of decline, growing from 145,000 vehicles sold to nearly 225,000, an all-time high.
“This near-term sales strength has pushed the market share of plug-in vehicles in Europe to slightly above 20%. Key markets that continue to see extremely high EV penetration rates in terms of share of new car sales include Norway (89.0%), Germany (32.0%), and France (28.3%),” it said.
— Henry Edwardes-Evans