This is according to newly published figures from the Society of Motor Manufacturers and Traders (SMMT), which aims to support and promote the interests of the UK automotive industry at home and further afield.

The numbers released by the trade association shows that across all vehicle types, new car registrations reached 1.9 million last year, an increase of nearly 18% compared to 2022.

When it comes to battery electric vehicles — or BEVs — around 315,00 new vehicles were sold. This is roughly 50,000 more than in 2022, and represents a change of 17.8%. However, its market share in 2023 was 16.5%, which is narrowly down on 2022’s figure of 16.6%.

According to the SMMT, the majority of battery electric vehicles accounted for in 2023 were also bought by business and fleet buyers who benefitted from tax incentives — only one in 11 private consumers chose an electric vehicle over another type of car.

In light of the stalled market share and the low proportion of consumers buying BEVs, the trade association is calling on the UK Government to help private buyers by halving VAT on new electric vehicles for three years.

The body said that the temporary cut would give consumers access to financial support at a similar level to that of business buyers, and also help manufacturers to deliver larger volumes of zero emissions vehicles.

Further, the SMMT estimated that by halving VAT, consumers would have around £7.7 billion in additional BEV buying power by the end of 2026, and that it would encourage an extra 270,00 new car buyers in Britain to go electric.

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The call for consumer buying incentives comes just days after the UK Government introduced new laws mandating the switch to electric vehicles, with the end goal of having 100% of new cars and vans sold in the UK to be zero emission by 2035.

Commenting on the zero emission vehicle mandate and consumer incentives like a VAT cut, Mike Hawes, the chief executive of the SMMT, said: “Government has challenged the UK automotive sector with the world’s boldest transition timeline and is investing to ensure we are a major maker of electric vehicles.

“It must now help all drivers buy into this future, with consumer incentives that will make the UK the leading European market for ZEVs.”