Registrations of new cars down by 5% in July as drivers delay EV purchases
At least 28% of new cars sold by each manufacturer in the UK this year are required to be zero emission – which generally means pure electric – under the Government's zero emission vehicle mandate.
The first electric car models eligible for new Government grants were announced on Tuesday.
Drivers will be able to save £1,500 with the purchase of new Citroen e-C3, e-C4, e-C5 and e-Berlingo cars.
These are the first models approved under the new £650 million electric car grant.
The scheme will enable motorists purchasing a new electric car to save either £1,500 or £3,750, depending on the vehicle's sustainability.
SMMT chief executive Mike Hawes said: 'July's dip shows yet again the new car market's sensitivity to external factors, and the pressing need for consumer certainty.
'Confirming which models qualify for the new EV grant, alongside compelling manufacturer discounts on a huge choice of exciting new vehicles, should send a strong signal to buyers that now is the time to switch.
'That would mean increased demand for the rest of this year and into next, which is good news for the industry, car buyers and our environmental ambitions.'
The SMMT slightly upgraded its forecast for full-year new car registrations, to 1.9 million.
Registrations in 2024 reached 1.95 million.
Bevs are forecast to hold a full-year market share of 23.8%.
Ian Plummer, commercial director at online vehicle marketplace Auto Trader, said the grant has provided a 'much-needed boost' for consumer interest in new electric cars, with EV consideration up 10 percentage points on Auto Trader.
But the unveiling of the initiative on July 14 explains why it was a 'slow' month for sales as buyers 'wait to see just which models will get what level of grant'.
He added that discounts – either through the grant or by brands cutting prices themselves – will 'trickle through to EV sales in the coming months'.
Dan Caesar, boss of lobby group Electric Vehicles UK, said it is 'testament to consistent consumer interest' in EVs that one in five new car sales is fully electric, 'especially given that some car shoppers will have paused their purchases until there's more clarity about the electric car grant'.
John Lewis, chief executive of EV charging company char.gy, said the transition to electric motoring is 'clearly gaining pace' but warned this increases the need to 'ensure fair and convenient access to charging', particularly for the 40% of drivers without off-street parking at home.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Glasgow Times
35 minutes ago
- Glasgow Times
Migrants attempting to enter UK in refrigerated trailers are ‘constant threat'
The study, published by logistics company Oakland International, stated that 4,415 instances of a truck or van being found with stowaways seeking to reach the UK were recorded between 2016 and 2023. An average of nearly 100 people per month were detected infiltrating trucks entering the UK between January and September last year. People hiding in trailers cause delays, increased costs, potential damage to goods and disposal of produce, researchers found. Companies transporting food, household goods and healthcare items dispose of an average of 56% of stock on an infiltrated lorry. The value of lost stock can be up to tens of thousands of pounds, research found. This can result in revenue loss several times higher. The report, produced with research company Analytiqa, stated: 'The use of refrigerated trailers to gain illegal access for stowaways remains a constant threat to food safety and contributes to considerable unnecessary waste and risk within the food supply chain.' Oakland International co-founder Dean Attwell said: 'The rise in clandestine infiltration is not just a statistic, it's a ticking time bomb for food safety, driver security and public health. 'Every compromised load puts the public at risk and costs the industry millions per year. 'We need urgent, co-ordinated action across the supply chain to implement robust security protocols, improve traceability and ensure accountability at every stage.' In cases where a vehicle is found carrying a hidden entrant, the Government can issue the transport company with fines of up to £10,000 per stowaway. Road Haulage Association senior public affairs lead Ashton Cull said failings within Border Force and the Clandestine Entrant Civil Penalty Scheme mean 'all the responsibility and liability is being unfairly shifted onto drivers and businesses who have taken all possible steps to secure their vehicles'. He added: 'We repeat our call for further and urgent investment in training and technology at our borders to help keep loads secure. 'We want to see a fair system in place that protects drivers, goods and businesses as well as our borders. 'We look forward to seeing greater urgency on this issue.' The Home Office was approached for a comment.
The Guardian
44 minutes ago
- The Guardian
Thames Water says new Abingdon reservoir could cost bill payers up to £7.5bn
Struggling Thames Water has said a new reservoir in Oxfordshire could cost more than three times the original budget, pushing the eventual cost to be covered by water bill payers to as much as £7.5bn. In a blow to government plans for an expansion in the number of reservoirs across south-east England, the heavily indebted utility said a review of the Abingdon project had sent the estimated cost of construction from £2.2bn to between £5.5bn and £7.5bn. Only last year, Thames told the Department for Environment, Food and Rural Affairs (Defra) that its assessment of likely costs was 'robust'. But the company has now told regulators that further tests, including of the ground and local waterways, had shown the final bill would be more than twice, and possibly three times, the current forecast. If the reservoir goes ahead, customers will pick up the tab. About half the costs are due to be recovered from Thames Water's 16 million customers across London and the south-east, with Affinity Water and Southern Water customers sharing the rest. Thames customers already face a 35% increase in bills over the next five years under a settlement by the sector regulator Ofwat, while those with Affinity face a 26% lift and with Southern the rise is 53%. The chancellor, Rachel Reeves, has pledged to build nine major reservoirs – the country's first in 30 years – in her determination to take on 'the blockers' opposing construction projects and renew the UK's ageing infrastructure. In an article published in the Guardian this week, she said the government wanted to 'break down the planning system to get Britain building'. Ministers have backed the scheme, which will be capable of holding 150bn litres of water in an area the size of Gatwick airport, after assessments found Thames will need to find an extra 1bn litres of water every day by 2050. Regulators have accepted that Thames Water would be unable to reduce leaks or redirect watercourses to mitigate this extra usage as part of a 50-year plan. Last year, the Abingdon reservoir was designated as a nationally significant infrastructure project and fast-tracked through planning approval without a public inquiry. The move prompted local campaigners to challenge the decision in the high court, but the appeal was rejected last month. Derek Stork, the chair of the Group Against Reservoir Development, said Thames must have known 10 months ago when it responded to a Defra request for more financial details that its costs had risen steeply. Stork, a retired former head of technology at the Atomic Energy Authority, said Thames must also have been informed of the rising costs when it defended the civil action earlier this summer brought by local residents and the countryside charity CPRE. 'We predicted this would happen, but even I am astonished by the increase to £7.5bn,' he said. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion The reservoir has proved controversial after Thames Water said it would need to build walls up to 25 metres high to contain the mass of water inside. Local streams that run across the land will also need to be redirected close to homes in nearby villages, increasing the likelihood of local flooding, it is claimed. Most reservoirs are built in natural valleys or on substantial areas of clay, which are in short supply in the south-east of England. Thames Water said the reservoir remained a priority project despite the increase in costs. Nevil Muncaster, the firm's strategic water resources director, said: ''[Today] we published our Gate Three report for our proposed reservoir in Oxfordshire, in line with the regulatory process that we are following for its design and development. 'The report marks a critical milestone in our development of the reservoir. It reflects the extensive work we have done to evolve our proposed design and better understand what it will take to deliver it. 'Working through the development process, we are applying lessons from other major projects in the UK, wherever we are able. This has included providing an update on what we expect the reservoir to cost as early as possible and well before construction, when it becomes difficult to adapt to revisions. 'The reservoir is a critical piece of infrastructure for meeting future water demand in the south-east and remains one of the preferred options in our water resource management plan which sets out our strategy to protect water supply for the next 50 years and beyond.'' Thames has submitted the review amid a desperate struggle to avoid collapse. It has amassed a £20bn debt pile and a deal with private equity firm KKR to inject £4bn of funds to keep the company afloat was abandoned in June. The company's creditors have put forward a rescue plan contingent on regulators agreeing to waive hundreds of millions of pounds in sewage pollution fines. This week it emerged that Steve Reed, the environment secretary, has appointed City insolvency advisers to prepare for the company's potential collapse into a special administration regime (SAR) – a form of temporary nationalisation. It was also reported that if that situation arises, the Hong Kong infrastructure company CKI is a frontline contender to buy the company out of an SAR.
Daily Mail
44 minutes ago
- Daily Mail
Taxman uses AI to snoop on social media posts of suspected tax cheats
HM Revenue and Customs is using artificial intelligence to snoop on suspected tax cheats' social media accounts, it has emerged. The taxman is using AI tools to scour social media posts for evidence of tax fraud and inconsistencies in income. It's the latest revelation of a government body using AI for its decision-making and processes. But if you abide by the rules you won't have to worry about AI snooping on your Instagram posts. The tax office is adamant AI tools are only used for social media monitoring in criminal investigations and with legal oversight. This isn't a new process – AI has been used to monitor social media accounts for 'years', HMRC says. But this fresh revelation has sparked a wave of concern from experts and politicians who say there is a risk AI could get it wrong - and accuse innocent households of evading tax, the Telegraph reports. Tax experts say that this could spark case of mistaken identity if AI is used to collate information about an individual from social media. Plus, there is a risk that accounts could be hacked or fake accounts could be created which could complicate the process. But officials maintains that there are robust checks and balances in place. An HMRC spokesman said: 'Use of AI for social media monitoring is restricted to criminal investigations and subject to legal oversight. 'AI supports our processes but – like all effective use of this new technology – it has robust safeguards in place and does not replace human decision-making. 'Greater use of AI will enable our staff to spend less time on administration and more time helping taxpayers, as well as better target fraud and evasion to bring in more money for public services.' AI is currently used to 'streamline' administrative tasks at the Revenue including internally using chat assistants to allow better access to information and also to summarise calls for advisers so they can cut down the time it takes to wrap up a call. The revelation of HMRC's AI use comes as it is under pressure to close the tax gap – the difference between the amount of tax that HMRC should be raking into its coffers and the amount it actually does. It's thought the use of AI in the Revenue will become widespread on the quest to rake in more money as it was last month revealed AI tools will spread to 'everyday' tax processes. It is hoped this will pull in an additional £7billion for the tax office. One of HMRC's new processes will be using AI tools to identify suspected tax evaders and nudge them to pay what they owe. It says AI tools will allow its staff to focus on more complex work instead of replacing jobs – it says it will hire some 5,500 compliance staff.
