One in every four new cars registered in February was an EV, according to the latest statistics from the from the Society of Motor Manufacturers and Traders (SMMT). Battery-electric vehicle (BEV) registrations surged by 41.7% to 21,244 units, securing a 25.3% market share - up from 17.7% in February 2023. Plug-in hybrids (PHEVs) also saw a surprising 19.3% increase, while hybrid electric vehicles (HEVs) rose by 7.9%.

Overall, the UK new car market saw a slight decline in February, with registrations falling by 1.0% year-on-year to 84,054 units. Fleet registrations, which have previously driven market growth, dropped by 4.0%, marking the fifth consecutive month of decline. However, private registrations rose by 4.6%, now accounting for 35.6% of total sales.

The sharp rise in BEV sales is largely attributed to impending tax changes set for April. From 1 April, the government’s expensive car supplement (ECS) will apply to EVs for the first time, adding £2,125 over six years to models priced above £40,000. Given that most BEVs exceed this threshold due to high production costs, demand has spiked as buyers move to avoid the extra charges.

With the new '25 plate arriving in March, the coming month is expected to see another jump in EV registrations before the ECS takes effect. However, concerns remain that the tax changes could slow long-term growth in the EV market, affecting both new and used sales. The ECS threshold has remained unchanged since 2017, despite the rising cost of electric vehicles.

Manufacturers have already subsidised the transition to EVs with more than £4.5 billion in discounts over the past year. However, industry leaders warn that this level of support is unsustainable. The Zero Emission Vehicle (ZEV) Mandate, which requires 22% of manufacturer sales to be zero-emission in 2024, will need additional measures to incentivise private purchases and accelerate charging infrastructure rollout if the UK is to hit its 28% EV target by 2025.

One surprising aspect of February’s registration figures was the performance of Tesla which recorded an increase in registrations for the month. The brand’s UK performance is in contrast to its fortunes in Europe, where it has seen a dramatic decline in sales. France reported a 45% drop while Sweden recorded a 42% drop in sales for the American brand. Norway, once a Tesla-dominated market saw just 917 Teslas sold during February. The decline in demand follows numerous protests against the company’s controversial CEO, Elon Musk.