Is Fiat going fully electric? Not quite
From next month, Italian car manufacturer Fiat will only sell electric and hybrid cars in the UK. The move follows Fiat releasing its new 500X and Tipo Hybrid in February 2022. This milestone is a step towards a set of targets outlined by Stellantis, Fiat’s parent company, in its 2021 financial report. Stellantis stated aim is for Fiat’s European range to be fully electrified by 2027, and for all vehicles it sells globally to be electric by 2030. The UK government has said it wants to end sales of petrol and diesel cars by 2030, with hybrids phased out from 2035.
The move comes amid significant growth in Fiat’s sales of electric cars in the UK. In May 2022 fully electric vehicles made up 36% of Fiat's total new car sales, up from just 3% in the same month last year. In the same 12-month period, Fiat became one of the top ten companies in terms of new electric vehicle market share in the UK, selling 3.86% of all new electric vehicles sold in May 2022. The shift to a fully electrified range should see Fiat further grow its UK market share over the next 12-months.
Fiat's recent growth in the UK EV market can be at least partly attributed to the success of its fully electric New 500 model since its release in 2020. A modern, fully electric redesign of the famous 1950’s 500 model, the New 500 has proven to be popular – particularly in Europe.
Fiat now holds 4% of the EV market share in the UK - this is a massive step up from 60-odd Fiat EVs sold this time last year.
Chart: Electric Car Count
Disappointingly, the move is not a commitment to only sell battery electric vehicles (BEVs), which are by far the greenest and most cost-effective type of electrified vehicles. Fiat will continue to sell plug-in hybrid electric vehicles (PHEVs) and traditional hybrids. Fiat should take the success of its fully electric New 500 model, along with the downward trend in the sale of PHEVs, as an indication of drivers desire for BEVs, as opposed to inefficient hybrids. Motorists are increasingly understanding that fully electric cars are cheaper to run, less hassle to maintain, and offer a better driving experience than PHEV or traditional hybrid alternatives.
Fiat’s growth in new EV registrations over the last 12 months is reflective of the continued growth of new EV registrations, even as overall car sales declined. Of the top 20 companies in terms of total new EV registrations, 15 experienced an increase in their May 2022 registrations compared to their figures from May 2021. Ford experienced a 787% increase on its May 2021 registration figures, Citroen a 719% increase, and BMW a 424% increase. On average, there was a 165% increase in new EV registrations across the 20 companies.
This exponential increase is evidence of increasing motorist desire for fully electric vehicles, and the success of the UK’s transition to electric vehicles thus far. New Automotive recently calculated that the recent surge in fuel prices mean the per mile cost of running an electric vehicle (EV) has sunk to around 80% less than the bill for petrol and diesel models – a saving of around £1,000 for motorists who travel 7,400 miles a year. As petrol and diesel prices continue to rise, the savings offered by BEVs will likely help drive more motorists to make the switch to an electric vehicle. These trends indicate that the targets outlined in the government’s ZEV mandate are highly realistic and achievable, and that there may be grounds to begin a conversation about even more ambitious targets.
Upon the announcement of Fiat’s decision, Greg Taylor, Fiat and Abarth UK Managing Director, commented “This step in Fiat’s history marks a pivotal point in our commitment to providing affordable and sustainable mobility solutions for all of our customers”. Whilst ideally Fiat’s commitment would have been to only sell fully electric BEVs in the UK, rather than continuing to sell PHEVs and traditional hybrids, it is still a positive move, and has great symbolic value. As the UK government moves to introduce a Zero Emissions Vehicle Mandate that will not reward manufacturers for selling hybrids, it is unlikely that sales of hybrid Fiats will become established.
Fiat is a globally recognised and trusted company, and can trace their history in automobile manufacturing back to 1899, when the Fiat 4 HP was first produced. The company’s decision to fully electrify its UK range represents a respected, trusted, and historically significant automobile manufacturer taking an exciting, and important step towards embracing the electric future of the car industry!