Electric vehicles provided a bright spot for the auto industry, which had its worst year in three decades.
The Society of Motor Manufacturers and Traders said that battery-powered cars overtook diesel for the first time last year. Overall shipments fell 2% to 1.61 million, the lowest level in 22 years.
soaring energy and borrowing costs have recently been faced by carmakers. Corporate buyers accounted for two-thirds of new EV registration, according to SMMT.
If the UK is to meet its climate targets, it needs to convince more private drivers to buy an EV. The group objected to the UK's plan to impose road taxes on zero-emissions vehicles.
SMMT's chief executive officer said that the shift is inevitable.
The Model Y and Model 3 were the most popular electric cars in the UK last year. SMMT expects around 1.8 million new-vehicles to be registered this year, as supply chains begin to Stabilize and the Global Semiconductor shortage improves.
The UK car industry's prospects are going from bad to worse.