Electric car sales has record-breaking year, but overall market flat
Latest figures from trade body SMMT shows little growth in car registrations, but electrified vehicles now make up a quarter of sales
One in six new car registrations in 2021 was a plug-in electrified vehicle, compared to one in ten the previous year, creating a growing chasm between electric vehicle adoption and the infrastructure with which to power EVs.
New data from the Society of Motor Manufacturers and Traders (SMMT) showed that 305,000 plug-in vehicles (electric vehicles and plug-in hybrids) were sold last year, accounting for 18.6% of overall market share. Including non-plug-in hybrids, 27.5% of the market is now electrified. In 2021, electrified cars made up 17 per cent of market share.
Electric vehicles accounted for 11.6% market share and 190,000 units. It means that more EVs were registered last year than over the previous five years combined.
SMMT chief executive Mike Hawes said: “It’s very good news on the plug-in front but we can’t afford to be complacent. Other competitor markets are growing just as quickly, and sometimes even faster than us.
“There’s a long way to go to reach net zero. Around one in 100 vehicles on the road is a plug-in. The Government’s ambition is that by 2030, we need to get that to one in three.
He continued: “It shows how much we need to accelerate sales. It’s not by lack of want from the manufacturers. There are now 140 plug-in vehicles available with another 47 expected this year.
“The biggest obstacle to our shared net zero ambitions is not product availability but cost and charging infrastructure. Recent cuts to incentives and home charging grants should be reversed and we need to boost the roll out of public on-street charging with mandated targets, providing every driver, wherever they live, with the assurance they can charge where they want and when they want.”
“With the increase in EV sales and much slower increase in provision of on-street charging, the gap is getting worse.”
*Overall market flat*
The overall car market has fractionally improved over 2020, but only by one per cent or around 16,000 units. In 2020, 1.63 million cars were sold, while in 2021, it was 1.65m.
Hawes commented: “2020 was the worst year for car sales since 1992 - 2021 is the second worst year since 1992. It is not a fabulous picture by any shape or form.”
He added: “It’s been another desperately disappointing year for the car industry as Covid continues to cast a pall over any recovery. Manufacturers continue to battle myriad challenges, with tougher trading arrangements, accelerating technology shifts and, above all, the global semiconductor shortage which is decimating supply.
“Demand is still strong. The challenge is how you maximise your ability to supply customers when supply is so heavily challenged.”
While sales of plug-in vehicles have grown massively, petrol remains, by far, the most popular power, holding 58.5% of market share. Diesel accounted for 16.0%, still outperforming electric vehicles for the time being.
Superminis remained Britain’s most popular cars, with 513,000 registrations, followed by the lower medium (449,000) and dual-purpose (443,000) segments.
*Vauxhall beats Ford to the top spot *
The Vauxhall Corsa was the top-selling car of the year, knocking Ford off the top spot for the first time in years. The electric Tesla Model 3, also an unexpected candidate, came in second place followed by the Mini hatchback.
The Ford Fiesta, which has topped the charts for a number of years, is nowhere to be seen in the top 10, restricted by supply issues caused by the semi-conductor shortage. The only Ford car ranked is its popular Puma compact SUV in seventh position.
A Ford spokesman told Autocar: “In 2021, semiconductor shortages meant we prioritised commercial vehicles, customer orders and newer products like Puma and Kuga, and have consequently sold less of our traditional models like Fiesta and Focus.
"As is evident from our passenger range, it is becoming far more focused around sports utilities, with around 64 percent of all our passenger vehicle sales across Europe in the third quarter being SUVs.”
The Model 3 is the bestselling electric car, with the Kia Niro and Volkswagen ID3 in second and third place respectively. For full lists of the overall top 10 cars sold, plus electric vehicles and plug-in hybrids, see below.
*Predictions for the year ahead and beyond*
SMMT predicts sales of 1.96m for 2022, an increase on this year but nowhere near what it considers a ‘normal’ run rate of 2.25 to 2.3m. Hawes said the pressures from the semi-conductor shortage are expected to ease as the year goes on, but are likely to run into 2023, adding that “different brands are affected to a greater or lesser extent, depending on their relationship with semiconductor suppliers”.
He commented: “We can’t lose sight of just how tough it is for the industry. These are significant drops from where we should be. Semiconductors are the major challenge - vehicles use between 1500 to 3000 semiconductors. When car makers can’t get them, they mitigate - focusing on high-margin vehicles. But they also need to hit CO2 targets, which means allocating supply to electric vehicles. It’s one reason why EVs have performed so well.”
Full import controls, as a result of Brexit, are also now in place. Hawes said: “It’s too early to say, but we don’t see any major problems bringing vehicles and goods through ports. That’s partly because the industry spent a huge amount of time preparing for this.
"The current shortage of vehicles is not Brexit-related, and the EU still remains the biggest market despite Brexit. We got a deal that just about worked for the industry. We’re avoiding tariffs, we’re avoiding quotas, although it is more administratively burdensome.
He added: “It’s a highly distorted market because of the semi-conductor crisis, but we’re operating under the new Brexit regime with additional costs and there is more to be resolved, for example a permanent type approval for vehicles."
Top 10 cars overall
1. Vauxhall Corsa
2. Tesla Model 3
3. Mini Mini
4. Mercedes Benz A-class
5. Volkswagen Polo
6. Volkswagen Golf
7. Nissan Qashqai
8. Ford Puma
9. Kia Sportage
10. Toyota Yaris
Top 10 Battery Electric Vehicles
1. Tesla Model 3
2. Kia Niro
3. Volkswagen ID3
4. Nissan Leaf
5. Audi e-tron
6. Hyundai Kona
7. Mini Mini
8. Renault Zoe
9. Vauxhall Corsa
10. MG ZS
Top 10 Plug-in Hybrid Vehicles
1. BMW 3 Series
2. Mercedes-Benz A-Class
3. Volvo XC40
4. Ford Kuga
5. Audi A3
6. Range Rover Evoque
7. BMW X5
8. Volvo XC60
9. Range Rover Sport
10. Seat Leon
