Electric vehicles accounted for more than a quarter of all new cars bought in the UK last month, but demand is being propped up by “unsustainable” discounts from manufacturers, the trade body has warned.
New car sales in the UK fell 1.9 per cent in November, with 153,610 engines on the road, latest figures from the Society of Motor Manufacturers and Traders reveal.
Sales of electric vehicles increased for the 11th consecutive month (by 58.4 percent) to account for 25.1 percent of all new registrations – the largest share of sales that battery-powered cars have achieved in a single month in almost two years.
In contrast, registrations of gasoline and diesel vehicles fell by 17.7 and 10.1 percent respectively in November.
However, industry bosses said the figures masked the sector’s “continuing struggles” to meet the aggressive targets of the government’s zero-emission vehicle (ZEV) mandate introduced this year, with fines looming for manufacturers who fail to comply. with the designated quota.
The ZEV mandate, launched in January, is designed to force manufacturers to increase their share of electric vehicle sales in each of the next six years as part of the phase-out of new gasoline and diesel models starting in 2030. .
For this year, the mandate requires that 22 percent of each brand’s sales be all-electric, a figure that will increase to 28 percent next year and 33 percent in 2026.
So far, by 2024, manufacturers as a whole are well below 18.7 per cent, official figures show, despite offering discounts totaling £4bn as part of efforts to make electric vehicles become more attractive to drivers.
Electric vehicle sales rose for the 11th consecutive month in November, up 58.4 percent to 25.1 percent overall, in contrast, gasoline and diesel car registrations fell 17.7 and 10.1 percent respectively, SMMT data shows.
The increasing pressure of the ZEV mandate dominates the new car market.
Electric vehicle sales may have reached their highest market share since December 2022, but November is only the second month this year in which BEV adoption has surpassed mandated levels.
And sales of battery-powered cars are being boosted by manufacturers slashing the price of new electric vehicles in a bid to stimulate demand, experts suggest.
The SMMT says carmakers have offered £4bn worth of discounts in 2024 in a bid to boost demand.
The deep discounts are just one of a series of industry tactics – from staging protesters at dealerships to aggressively positioning the mobility market and restricting sales of gasoline cars – used by beleaguered manufacturers who have pledged to hit 22 percent of electric vehicle sales this year in a vain effort to stimulate private demand.
But demand from private buyers continues to fall below the expected level needed to meet regulatory targets.
The Zero Emission Vehicle (ZEV) mandate requires 22% of all car sales from major manufacturers to be electric vehicles this year to avoid fines of £15,000 per model.
New car sales fell 1.9 percent in November, with 153,610 engines on the road.
Acceptance has been declining among private buyers of electric vehicles for two years, with demand falling 3.3 percent in November, meaning that less than four in 10 (38.1 percent) of new registrations were electric.
Acceptance has been declining among private EV buyers for two years, with demand falling 3.3 percent in November.
This means that less than two in five (38.1 percent) of new registrations among the general public who bought cars last month were electric.
Even fleet sales, which account for the largest share (59.9 percent) of the market, fell 1.1 percent to just 91,933 units.
In light of this, the industry now expects the UK’s EV market share to be 18.7 per cent in 2024, although a strong performance in December could see it reach 19 per cent; however, it is still a long way from the 22 percent requirement.
And according to the latest industry outlook, electric vehicle registrations will need to grow an additional 53 percent in 2025 if next year’s mandatory 28 percent target is to be met, which equates to 90,000 more businesses and consumers making the switch. change.
New Automotive’s ZEV tracker shows that JLR’s parent company Tata and Toyota are the two manufacturers that will miss their targets the most.
In order to cover electric car sales, industry voices are calling on the government to “urgently review market regulation and the support needed to drive it,” the SMMT said.
Mike Hawes, its chief executive, added: ‘Manufacturers are investing at unprecedented levels to bring new zero-emission models to market and spending billions on attractive deals. These incentives are unsustainable – the industry alone cannot achieve the UK’s global ambitions.’
Ford’s UK boss this week demanded the return of subsidies for electric vehicles that were removed more than two years ago, in June 2022.
Lisa Brankin, the carmaker’s UK president, said the weakening demand needed to be boosted by a “substantial” subsidy or another financial incentive such as a VAT cut on the prices of new electric vehicles.
The government recently met with industry leaders to discuss the ZEV mandate and ways to help beleaguered companies meet the strict thresholds introduced this year.
However, many parties do not follow the government’s lead.
Fleet sales, which account for the largest share (59.9 percent of the market), fell 1.1 percent to just 91,933 units last month.
Jon Lawes, CEO of Novuna Vehicle Solutions, went further in widespread criticism of the government’s electric vehicle sales targets and dismissed the ZEV mandate as “not fit for purpose.”
“The industry still supports the ambition to increase the adoption of electric vehicles, but there are two trade-offs that the government can no longer ignore,” he said.
‘Policymakers should review the quota structure but accept a slower transition, or ease penalties on manufacturers but accept the need for more incentives for adoption.
“The government needs to quickly conclude its review, introducing further fiscal support and ending any disconnection with the 2030 ICE (internal combustion engine) phase-out schedule, which will otherwise continue to weigh on the used electric vehicle market “.
The ZEV mandate was introduced in January and sets binding electric vehicle sales targets that will increase annually over the next decade.
There are also concerns that announcements in the autumn budget of EV tax increases will dampen demand for EVs from private buyers.
James Hosking, managing director of AA Cars, said: “Changes in consumer priorities and wider economic pressures have stalled the recovery, further impacted by tax rises in the Autumn Budget.”
“These include inflation-linked vehicle excise duty (VED) increases from April 2025 and higher first-year rates, which have weakened buyer sentiment.”
Despite this, the SMMT says that “however, with appropriate and responsive market regulation, the UK could maintain a dominant position as an exemplary global market for a rapid transition to zero emissions.”
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