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The UK is competing with Germany to be Europe's biggest EV market through 2024, after carmakers spent an estimated £4.5bn in rebates to stimulate the shift away from internal combustion cars.
Electric cars accounted for 19.6 per cent of new cars sold in the UK last year, according to figures from the Society of Motor Manufacturers and Traders. This is higher than the 16.5 per cent expected through 2023, but still well below the 22 per cent target required by the UK. Electric vehicle Quota system.
Total number of electric vehicles sold in UK They rose 21 percent to a record 382,000 this year, higher than the 347,048 sold in Germany between January and November. Electric vehicle sales in Germany fell by 26 percent last year after subsidies were cut. The annual sales figure is scheduled to be released later this month.
“We will be competing for first place,” SMMT President Mike Hawes said. “It will be a touch and go between the two markets.”
The share of UK electric car sales reached 31 per cent in December, often a quiet month for car transactions as last-minute deliveries of electric cars can inflate their market position.
Despite the strong increase in sales, Hawes warned that retail demand for electric vehicles remains sluggish, with only one in 10 private consumers choosing an electric model. This has forced many automakers to offer incentives to convince consumers to buy electric cars, as they scramble to meet the government's mandate for zero-emission vehicles.
The current scheme requires a certain percentage of each automaker's annual sales to be zero-emission vehicles, with the percentage rising annually from 22 percent in 2024 to 28 percent this year, and reaching 80 percent in 2030. The companies face fines of 15 percent. One thousand British pounds. For every lost vehicle.
“I like to give a very positive narrative that this has been a record year for zero-emission car sales. But when you set a goal and don't meet it, that's seen as a failure,” Hawes said.
While the SMMT estimated that carmakers would need to spend £1.8bn to buy credits to avoid fines last year, the Department for Transport said it was “confident” that flexibility in the current scheme meant none of them would face financial penalties due to the sanctions. Year 2024.
The ZEV mandate – put in place by the previous Conservative government when sales were expected to rise sharply – has come under heavy criticism from the industry, which has warned that pushing too quickly will cost jobs.
Labor ministers are now considering easing the rules to make it easier for automakers to meet the targets, last month Consultation launched On the chart.
The consultation will look at hybrid cars that could be sold alongside zero-emission models between 2030 and 2035, as well as expanding a scheme where carmakers can buy credits from rivals to meet targets.
Even automakers that are on track to meet the targets warn that more incentives are needed to help the industry meet the increased targets later this decade.
Although anyone who buys an electric car through a company car scheme can get generous tax treatment, prevailing consumer purchase incentives were removed several years ago, something that carmakers say has made it difficult to sell models that are often… More expensive than gasoline equivalents.
Kia, which is on track to achieve its 2024 and 2025 goals, warned that it may still need more help later.
UK President Paul Philpott said: “Going from 33 per cent in 2026 to 80 per cent in 2030 is a big jump.”
The brand, a subsidiary of South Korea's Hyundai Motor Company, announced record sales driven by demand for its hybrid cars as well as fully electric models.
“The incentive now will be a really positive incentive to build this momentum more quickly and make achieving the goal in the coming years even clearer.”
The DfT said it had “invested more than £2.3 billion to support industry and consumers in the transition, rolled out more than 72,000 public chargers, and launched a consultation to invite the sector to shape how the transition to ZEVs is achieved.”
