EVs accounted for about 17 percent of new-car registrations in the UK last year.
Automakers had their worst year of UK sales in three decades, with only electric vehicles providing a bright spot.
Full-electric cars accounted for 16.6 percent of new-vehicle registrations last year, overtaking diesel for the first time as sales rose 40 percent, the Society of Motor Manufacturers and Traders (SMMT) said in a statement on Thursday.
That did not stop overall shipments from declining 2 percent to 1.61 million — the lowest level since 1992.
Automakers struggling with parts shortages have more recently faced intensifying headwinds including soaring energy and borrowing costs. While the increase in demand for electric cars is promising, SMMT warned that corporate buyers accounted for two-thirds of new EV registrations.
The UK needs to persuade more private drivers to buy an EV if it wants to meet its climate targets, including by speeding up the installation of charging points, SMMT said.
"Demand for EVs has also been dented by soaring energy costs and the removal of important government subsidies and although electric cars will continue to grow, demand in 2023 may not be in line with industry predictions as 2022 was a particularly unpredictable year," Chris Evans, the sales boss at used-car portal Heycar, said.
The group also criticized the UK’s plan to subject EVs to road taxes from 2025, saying the move would penalize customers of zero-emission vehicles.
“The shift is inevitable; the question is the pace,” Mike Hawes, SMMT’s CEO, told reporters.
Tesla’s Model Y and Model 3 were the two most popular EVs in the UK last year, followed by Kia’s e-Niro.
The SMMT still expects around 1.8 million new-vehicle registrations this year as supply chains begin to stabilize and the global semiconductor shortage improves.
In December, German car sales jumped 18 percent to 128,462.
