Electric vehicle sales soar but still miss government target in 2024
- Electric vehicles comprised 19.6% of the new car market in the UK in 2024.
- Manufacturers are facing fines for not meeting the government's ZEV Mandate target.
- Adjustments to goals and incentives are being lobbied for by the automotive industry.
In 2024, new car sales reached a total of 1.95 million units in the United Kingdom, where electric vehicles accounted for 19.6 percent of these registrations. Despite this record number for electric car sales, the sector did not meet the government's target of 22 percent as stipulated by the Zero Emissions Vehicles (ZEV) Mandate, risking substantial fines for manufacturers. The automotive industry faced challenges as registration numbers fell short due to various factors, including a growing reliance on fleet sales by businesses and a decline in private car registrations, which fell below the 2020 pandemic levels. Concerns over consumer confusion regarding vehicle types have contributed to a significant drop in private purchases. With petrol models still dominant at 52 percent, electric vehicles need a 46 percent increase in battery electric vehicle (BEV) sales to reach next year’s target. The Society of Motor Manufacturers and Traders (SMMT) led calls to revise government goals and proposed incentives, including halving VAT for electric vehicles and public charging stations to stimulate sales. The consultation process regarding these proposals is anticipated to extend beyond mid-year, leaving manufacturers uncertain about compliance and strategy for the upcoming regulatory changes. Additionally, the landscape is shifting with the growing appeal of hybrid and plug-in hybrids, whereas the diesel segment has diminished considerably. The increasing demand for SUVs signifies a notable change in consumer preferences, with Tesla's Model Y emerging as the best-selling electric vehicle and Ford's Puma topping overall sales charts in 2024.