Electric cars sales slow as charging costs weigh on drivers

Electric car sales are slowing as electricity prices push up the cost of charging and the broader cost-of-living squeeze leaves drivers with less to spend.

The UK passed the milestone of one million electrified cars sold to date in September, but battery-powered car sales for the month were below the high reached in March this year.

Only 38,116 purely electric cars were sold in September compared to 39,315 in March, according to figures from the Society of Motor Manufacturers and Traders.

September and March are historically the biggest months for car sales, as motorists can buy a car with a new age identifier number on its plate. The new figures introduced on March 1 and September 1 this year were 22 and 72.

Ginny Buckley, founder of Electrifying.com, said: “Affordability is clearly an issue and with just seven models available for under £30,000, this is a sign that Britain’s electric car buyers are struggling to get behind the wheel.

“This, together with the withdrawal of the government grant, cost-of-living crisis and hike in energy prices is clearly leading to a slow-down in demand for electric cars.”

The Government closed a scheme offering a discount on the purchase price of cheaper electric cars in June, drawing criticism from industry.

The cost of charging a car has also risen in line with energy prices, with customers paying 42pc more since May to charge at a quick public power point.

While petrol prices have also risen, electric car owners without their own domestic charge points in a garage or on a front drive have been particularly stung. Recent research by the RAC suggested that the cost of charging a car using a rapid public charging point now rivalled petrol per mile.

The expense is seen as a roadblock in mass adoption of electric cars, since many potential buyers who live in flats or in terraced houses will not be able to install a personal charger.

Mike Hawes, SMMT chief executive, said: “September has seen Britain’s millionth electric car reach the road – an important milestone in the shift to zero emission mobility. Battery electric vehicles make up but a small fraction of cars on the road, so we need to ensure every lever is pulled to encourage motorists to make the shift if our green goals are to be met.”

SMMT’s figures do suggest the car industry’s chronic problem with parts shortages, particularly microchips, may be coming to an end. Broader September car sales, including petrol and diesel models, rose 4.6pc to 225,269 marking the second successive month of growth.

Ian Plummer, commercial director at Auto Trader, said: “For the past 18 months, manufacturers have been struggling to get vital components, such as semiconductors due to Covid and then exacerbated by the war in Ukraine.

“But the signs are that these supply pressures are now beginning to ease, with more availability of essential parts which will help a number of manufacturers fulfil some of their order backlog.”