Record EV market share but private demand slumps
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New car registrations reached 1.953 million in 2024, with the market growing 2.6% year on year.
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Electric vehicles have a record annual volume and market share of 19.6%, but below the target level.
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Private consumer demand will decline: in 2024, only one in 10 private buyers will switch to electricity.
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The industry welcomes the review of mandatory regulations, but warns that current demand will not ensure the realization of ambitions without government support.
The UK new car market recorded its second year of growth, with 1,952,778 new cars hitting the road in 2024, up 2.6% on the previous year, according to the latest data from the Society of Motor Manufacturers and Traders (SMMT).
In the final month of the year, the market remained unchanged at 140,786 units, representing a slight decline of -0.2%, capping a difficult year for the sector as manufacturers sought to create demand for electric vehicles in a bid to meet newly set sales targets.
For the whole year, growth was achieved solely due to the fleet, rose 11.8% to 1,163,855 units, representing a record six in 10 (59.6%) new vehicle registrations. Conversely, private buyer registrations fell -8.7% to 746,276 units – less than in 2020, when social distancing restrictions during the pandemic closed the market for three months.
First year of mandatory targets for new zero emission vehicles ended with another strong result in December, with 43,656 new battery electric vehicle (BEV) registrations accounting for 31.0% of the market – the highest since December 2022’s record 32.9%. As a result, Electric vehicles took 19.6% of the market (381,970 units). in 2024, more than a fifth (67,283 units) more than last year but less than the 22% required by the mandate.
The industry has pulled all levers to try to achieve this target, with manufacturers’ rebates expected to total more than £4.5 billion in 2024, an amount the SMMT believes is not sustainable in the long term. Billions of pounds of investment in new technologies and products over the past decade have brought a record 132 ZEV models to the UK market, up 38% on 2023 and representing a third of all models available. average range almost 280 miles – more than two weeks of driving for most people.
However, one of the main obstacles to growth has been low demand from private buyers, with only one in 10 choosing electric vehicles in 2024. Gasoline remained the most popular powertrain among these buyers, accounting for 61.0% of demand. hybrid electric vehicles (HEV) in second place (16.0%). Conversely, businesses and fleets registered approximately 64,000 more BEVs than a year ago, with such vehicles accounting for a quarter (25.4%) of registrations in these segments and demonstrating the effectiveness of compelling tax incentives available to non-residential buyers.
Marketwide, pure petrol and diesel vehicle registrations fell by -4.4% and -13.6% respectively as more buyers switched to either BEVs or low-emission hybrid electric vehicles (up 9. 6%) and plug-in hybrids (up 18.3%). ).
Mike Hawes, Chief Executive of SMMT says:
“A record year for electric vehicle registrations underscores the car manufacturers’ unwavering commitment to a decarbonized new car market with more choice, better range and greater affordability than ever before. However, this has come at a huge cost: billions invested in new models have been supplemented by generous incentives that are unsustainable.
“We need quick results from the regulatory review and urgent, meaningful support for consumers – otherwise investment in the car industry will be at risk and the jobs, economic growth and ambitions we all share will be at risk.”
Adds Department of Transport representative:
“December was another record month for new electric vehicles, with nearly one in three vehicles sold being electric, and 382,000 electric vehicles sold in 2024.”
“We have invested more than £2.3 billion to support the transition of industry and consumers, installed more than 72,000 public chargers and launched a consultation to invite the sector to determine how we achieve the transition to ZEV.
“The right transition as more people switch to electric vehicles will support the growth of the UK market and provide an opportunity to tap into a multi-billion pound industry that will create high paying job for decades to come.”
2025-01-06 10:29:53