The UK Government alongside experts have warned 2025 could be the year petrol and diesel drivers switch over to an electric car after reports found growing appetite for cleaner vehicles.
It comes after electric car registrations hit record levels in 2024, with pure battery electric vehicles accounting for 19.6 per cent of the UK’s new car market.
Around 382,000 electric vehicles were registered last year, as part of an overall 2.6 per cent rise in new car registrations across the UK.
The total new car market saw approximately 1,953,000 vehicles registered in 2024, up from 1,903,000 in 2023, according to figures from the Society of Motor Manufacturers and Traders (SMMT).
Do you have a story you’d like to share? Get in touch by emailing[email protected]
Electric car sales need to make up at least 28 per cent of new car sales this year to stay on target
PA/GETTY
The surge in registrations marks the second consecutive year of growth for the UK’s new car market but experts have had different opinions on what this means for the car manufacturing industry.
Quentin Willson, founder of FairCharge, said: “No surprise at the record EV figures, and we’re now seeing them everywhere. 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.”
The growth in electric vehicle registrations was driven entirely by fleet purchases, with business and organisational fleet registrations surging by 11.8 per cent.
In contrast, private buyer demand showed significant weakness, falling by 8.7 per cent to approximately 746,000 units – below even the levels seen during the pandemic-restricted year of 2020.
Small business uptake also declined, with companies running 25 or fewer vehicles showing a 3.1 per cent drop to around 43,000 units.
However, industry experts suggest these figures may not tell the complete story. Dan Caesar, CEO of EVUK, noted that the company sees that private buyers are buying new EVs but the registration figures are blended with fleet sales, “which distorts the data”.
This includes employees purchasing cars through salary sacrifice schemes, which are often recorded as fleet sales rather than private purchases.
Under the Government’s zero emission vehicles mandate, car manufacturers were required to ensure at least 22 per cent of the new car sales were electric in 2024.
This target is set to increase to 28 per cent this year, with manufacturers facing potential £15,000 fines per polluting car sold above the limit.
However, the Department for Transport has indicated that manufacturers can avoid penalties through various flexibilities, including consideration of their low-emission petrol and diesel car sales.
“The ZEV mandate is clearly working – even with the negativity being pushed by pockets of industry,” said James Court, Public Policy Director at Octopus Electric Vehicles.
The Department for Transport expressed confidence that “thanks to the flexibilities in the ZEV Mandate, we’re confident the whole market has complied with the 22 per cent target and that no car manufacturer will need to pay fines.”
But Caesar highlighted the growing consumer confidence in electric vehicles, with a recent surveys showing that nine out of 10 EV drivers will “never return” to combustion cars.
LATEST DEVELOPMENTS:
- Driving law changes you missed in 2024 – Petrol and diesel drivers face daily costs, car tax hikes and more
- Driving law changes you may have missed in December – HMRC updates, new car insurance rules and more
- Ford risks £100million fine for not meeting electric car goals amid struggle to scrap petrol and diesel
New car sales for electric vehicles has been steadily increasing in 2024
PA
Court added that the UK needs 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”.
SMMT chief executive Mike Hawes commented: “A record year for EV registrations underscores vehicle manufacturers’ unswerving commitment to a decarbonised new car market, with more choice, better range and increased affordability than ever before.
“We need rapid results from the regulatory review and urgent substantive support for consumers else automotive investments will be at risk.”