A Two-Speed Market: EVs Race Ahead While Petrol Stalls

September’s car sales data has exposed a stark two-speed market in the UK, where the electric vehicle segment is racing ahead at full throttle while the traditional combustion engine market continues to stall. This divergence, fueled by government policy and shifting consumer tastes, is creating a new and complex dynamic for the entire automotive industry.
In the fast lane are the electric and hybrid vehicles. Propelled by a new government grant, pure EV sales accelerated by nearly a third, and plug-in hybrids surged by an even faster 56%. This electrified segment is vibrant, dynamic, and now makes up the majority of the market, showing clear and rapid growth.
In the slow lane, the rest of the market is struggling. While the EV boom lifted overall sales by 14%, this figure masks the much more modest performance of conventional petrol and diesel cars. The total market volume remains well below pre-pandemic levels, indicating that without the electric surge, the industry would still be stuck in a low gear, hampered by the cost of living crisis.
This two-speed reality is a direct consequence of government strategy. The ZEV mandate forces manufacturers to focus on the EV fast lane, while the consumer grant acts as a powerful accelerator for buyers. This leaves the traditional market with less focus and fewer incentives, causing it to lag behind.
The challenge for the industry is to manage this divergence. Manufacturers must invest heavily in the high-speed electric race while still catering to the slower, but still substantial, traditional market. The risk is that if the support for the EV lane is removed too suddenly, the entire market could grind to a halt.