Record-breaking number of electric vehicles sold in August, according to SMMT statistics

The electric vehicle (EV) market in the UK is experiencing a significant boom, with sales reaching record-breaking levels in August 2021. According to the Society for Motor Manufacturers and Traders (SMMT), more than a quarter (26.5%) of cars sold during this month were electric vehicles.

This surge in EV sales can be attributed to a variety of factors. The increased model choice and discounting, coupled with government reductions, have made electric cars more accessible and affordable for many consumers. In September 2021, an additional 35 models became eligible for a £1,500 discount, further incentivising the shift towards zero-tailpipe emission vehicles.

The government's zero-emission vehicle (ZEV) mandate, which stipulates that new petrol and diesel cars may not be sold from 2030, has also played a role in the increased adoption of EVs. The targets for electric car sales are ambitious, with the government aiming for 28% of cars sold this year, 33% in 2026, 38% in 2027, 66% in 2029.

Last year, the objective of making 22% of all car sales purely EVs was surpassed, with EVs comprising 24.3% of the total sold in 2024. The largest amount of EV sales since December 2024 occurred in August 2021.

It's important to note that the increased percentage of EV sales occurred despite an overall 2% drop in car purchases compared to the same month the previous year. This suggests that the demand for electric vehicles is growing, even as the overall market experiences a slight downturn.

Manufacturers face fines for not meeting the targets, which could potentially drive further innovation and investment in EV technology. The mandate was altered in April to allow for hybrid vehicles to be sold until 2035, providing a transition period for manufacturers to fully embrace electric technology.

The savings from running an electric car are enticing motorists. According to the Energy and Climate Intelligence Unit (ECIU), demand for used EVs is already surging because they can offer £1,600 a year in savings in owning and running costs.

The pipeline of second-hand EVs is dependent on new car sales, which hit the used market after around three to four years. As more and more new electric vehicles are sold, we can expect to see a growing market for used EVs in the coming years.

Interestingly, the German federal government has also introduced financial incentives for the transition to zero-nitrogen-emission vehicles as part of their climate and transformation funding programs. This could potentially lead to a similar boom in the EV market in Germany, further increasing the global demand for electric vehicles.

August 2021 is typically the quietest month for car purchases, making the surge in EV sales even more impressive. As the UK continues to move towards a zero-emission future, it will be interesting to see how the EV market evolves in the coming years.