Manufacturers are scrambling to cut prices and attract customers so they can comply with tough government-imposed sales targets, with some dealers even claiming that petrol cars are now being “rationed” to them.
However, the SMMT warned this level of price-cutting – which it predicts will average £5,500 per car this year – is “unsustainable” in the long run.
Mike Hawes, the chief executive of the SMMT, said: “Massive manufacturer investment in model choice and market support is helping make the UK the second-largest EV market in Europe.
“That transition, however, must not perversely slow down the reduction of carbon emissions from road transport.
“Fleet renewal across the market remains the quickest way to decarbonise, so diminishing overall uptake is not good news for the economy, for investment or for the environment.
“EVs already work for many people and businesses, but to shift the entire market at the pace demanded requires significant intervention on incentives, infrastructure and regulation.”
Figures published on Tuesday for October’s new car market make grisly reading for manufacturers.
The total number of cars sold last month fell to 144,288, down by about 9,200 compared with a year earlier.
Businesses and fleet operators such as car leasing companies continued to do the heavy lifting, accounting for 62pc of sales – compared to just 38pc made by private consumers.
Petrol sales plunged from 84,702 to 72,681, with diesel sales tumbling from 11,276 to 8,961.
Meanwhile, even hybrids and plug-in hybrids – a bright spot for manufacturers previously – saw sales edge lower by 1.6pc and 3.2pc respectively.
Sales of EVs, by comparison, saw an increase of 5,859 to 29,802.