The most recent data from the SMMT also reveals an impressive 29% increase in car sales across the board, largely driven by the easing of global parts shortages.
However, the number of cars sold so far this year, which stands at 1.1 million, is still significantly lower than the 1.4 million sold during the same period in 2019.
A considerable portion of the growth in sales of electric vehicles can be attributed to corporate buyers who are acquiring them as company cars, taking advantage of tax incentives.
Richard Peberdy, UK Head of Automotive for KPMG, explains, “The primary driver of market growth is the increased purchasing of fleets and business vehicles, which previously faced supply disruption due to the pandemic. Electric vehicles are a key component of this business purchasing growth, thanks to low benefit-in-kind tax and write-down allowances.”
One of the limitations to the expansion of charging bays for electric cars is the availability of access to the electricity grid.
Charging companies have expressed their frustration to the SMMT about the slow progress in gaining access, especially considering that faster chargers put additional strain on the grid as they require rapid bursts of energy.
Earlier this week, BMW informed its investors that it is facing increased costs in the development of electric vehicles, resulting in a decline of over 6% in its shares.
The car manufacturer also reported a lower profit margin for the three months ending in June as it stocked up on parts.
In contrast, Toyota experienced a nearly 25% rise in sales just a few days ago, driven by strong demand during the first quarter of the year.
As it faces fierce competition with domestic manufacturers, the world’s largest automaker has confirmed its plans to accelerate the production of electric vehicles in China.
To achieve this, Toyota will focus on developing new parts for electric models and creating high-tech interiors specifically tailored to Chinese buyers.
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