In a year marked by both triumph and challenge, the UK's automotive industry has achieved a significant milestone with record sales of electric vehicles (EVs) in 2024, despite not meeting the government's ambitious Zero Emission Vehicle (ZEV) targets. As the nation progresses towards a greener future, the dynamics of the car market continue to evolve rapidly.
According to the Society of Motor Manufacturers and Traders (SMMT), a total of 1.95 million new cars were sold in 2024, with EVs comprising 19.6% of these, up from 16.5% in the previous year. This growth in electric car sales is noteworthy, yet it falls short of the government’s target of 22%. Despite this, there were 382,000 battery electric vehicles sold last year, marking a new annual record.
The year saw the Ford Puma and the Kia Sportage leading overall sales, with the Tesla Model Y topping the electric vehicle market, especially in December when Tesla pushed to maximise sales before year-end. This surge helped Tesla maintain its status as the world's largest EV seller – despite a strong push from Chinese giant, BYD.
The rise of SUVs as Britain’s preferred vehicle type was another key trend, with the shift towards electric helping to accommodate larger battery sizes necessary for such vehicles. This shift is part of a broader trend towards dual-purpose vehicles, which for the first time, outsold traditional car types like the supermini.
However, the journey towards electric adoption is not without its hurdles. Industry voices, including SMMT's chief executive, Mike Hawes, have expressed concerns over the sustainability of the current market dynamics. The industry has had to implement significant discounts to boost EV sales, a practice Hawes describes as “unsustainable”. With the 2025 target set at an even more ambitious 28%, the pressure is mounting.
The UK government, aware of these challenges, is considering easing the sales targets for 2025 to prevent imposing steep fines on manufacturers. This flexibility might include allowing credits for reduced overall emissions or trading credits with other manufacturers who exceed their targets.
It is a sad indictment of how UK policy is working in this area. For years, Hawes and other industry experts have called for help with reduced VAT etc on electric vehicles – and certainly a rejection of any attempt to place tariffs on EVs from the Far East entering the UK could really help. Instead, the targets are loosened.
Despite these proposed adjustments, environmental groups and advocates for green energy remain firm on the necessity of maintaining strict targets. Paul Morozzo from Greenpeace UK argues that the record sales are a positive sign and insists that the focus should now shift to improving public charging infrastructure and enhancing tax incentives for EVs over fossil fuel-powered vehicles.
Amidst these discussions, the government remains optimistic. A spokesperson from the Department for Transport highlighted the success of December's sales, where nearly one in three cars sold were electric. They also emphasised the government's commitment to supporting the transition with investments exceeding £2.3 billion, including the rollout of more than 72,000 public chargers.
It's worth bearing in mind that companies like Connected Kerb have, alone, promised to get a network of 190,000 public chargers live by the end of 2030.
As part of its strategy, the government is engaging with industry stakeholders through a consultation process, aiming to fine-tune the approach to transitioning to zero-emission vehicles. This consultation, closing in mid-February, seeks to gather insights on how to best achieve these ambitious goals.
Meanwhile, the automotive industry is advocating for additional measures to support buyers and manufacturers alike. SMMT is calling for reductions in VAT on new electric cars and public EV charging, along with a significant increase in the charging infrastructure outside of London to support a more balanced national uptake of electric vehicles.
“No surprise at the record EV figures, and we’re now seeing them everywhere,” said Quentin Willson, founder FairCharge and EVUK advisory board member. “However, the amount of private buyers is being unrecorded. Too many PCPs, contract hire, finance and Motability purchases are recorded as fleet sales when they’re being driven by private buyers. We need to change the way these EV registrations are recorded, and fast.”
Looking ahead to 2025, the industry anticipates a modest increase in overall car sales, projecting a total of close to 2 million registrations, with electric cars potentially reaching 24% of the market, still shy of the 28% target.
The outcome of these projections heavily depends on the government's final decisions regarding the ZEV mandate and the support mechanisms in place to facilitate this critical transition.
“We need a swift conclusion to the uncertainty around the ZEV mandate and refocus efforts of industry and government to making this transition a success, for everyone,” said James Court, Public Policy Director at Octopus Electric Vehicles.
In conclusion, while 2024 has been a landmark year for electric vehicle sales in the UK, the path forward requires a concerted effort from both the government and the automotive industry to ensure that the momentum not only continues but also accelerates. As Britain aims to lead the charge in electric vehicle adoption, the coming years will be crucial in shaping the future of transportation in the UK and beyond.
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