Search
Close this search box.
Sign up for our weekly Newsletter

Sales market slides as industry awaits Government help

EV sales surge but driven by discounts.
2412 newcarsales01

Share

5 December 2024

Deliveries of new cars fell by 1.9% in the UK during November, as the industry awaited promised Government investigation into the measures needed to support the uptake of electric vehicles (EVs).

Registrations of EVs climbed according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT), up 58.4% with 38,581 of the 153,610 new vehicles registered powered by electricity.

2412 newcarsales02An 11th consecutive month of sales growth saw EVs take a quarter of the market, but sales were driven by heavy discounting by manufacturers striving to meet the 22% sales figure demanded by the Government’s Zero Emissions Mandate. This was only the second time in 2024 that BEV registrations met the Government mandate and the level of discounting, worth some £4 billion in 2024, has been described as unsustainable.

Overall the market was down for a second consecutive month and the third decline in four months. Sliding demand from private buyers over the past two years continued, down by 3.3% to 58,496 units and accounting for fewer than four in 10 (38.1%) new registrations. Fleet purchases again represented the bulk (59.9%) of the market, but their total fell by 1.1% to 91,993 units.

2412 newcarsales03According to the SMMT manufacturers are committed to the mandate’s ambition, but market demand for EVs remains weak and below the levels expected when the regulation was drawn up by the previous government.

The industry now expects the UK’s BEV market share to be 18.7% in 2024, although a strong December performance could raise that to 19% – still, however, short of the 22% mandated target for the year.

Commenting on the figures the SMMT stated that Britain is Europe’s second biggest new BEV market by volume and closing the gap on leader Germany. This follows long-term manufacturer investment in new models, with more than 130 zero-emission choices now available – up more than 42% on a year ago.

“Manufacturers are investing at unprecedented levels to bring new zero-emission models to market and spending billions on compelling offers – such incentives are unsustainable and industry cannot deliver the UK’s world-leading ambitions alone,” committed SMMT Chief Executive Mike Hawes.

The SMMT calculates BEV registrations will need to grow by an additional 53% in 2025 if next year’s 28% mandated target is to be met – equivalent to 90,000 more businesses and consumers making the switch than the industry outlook expects

“It is right that government urgently reviews the market regulation and the support necessary to drive it, given EV registrations need to rise by over a half next year,” Hawes added.

“Ambitious regulation, a bold plan for incentives and accelerated infrastructure rollout are essential for success, else UK jobs, investment and decarbonisation will be at further risk.”

Philip Nothard of retail specialist Cox Automotive supported the SMMT view. “Fleet registrations remain the primary driver of EV adoption, while private registrations continue to face significant headwinds, highlighting affordability and infrastructure concerns,” he said.

Nothard added that year-to-date BEV market share at 18.7%, still below the 22% target for 2024 underscores the industry’s challenges in meeting the ZEV mandate. “While November’s performance supports our 2.0m forecast for the year, it also signals the critical need for urgent government intervention. Without accelerated infrastructure rollout, robust consumer incentives, and clear market regulation, the sector risks falling short of the ambitious targets set for 2025 and beyond.”

The MINI Cooper took top spot in the best selling cars list for November with 4412 registrations, but year-to-date the charts are led by the Ford Puma, an all-electric version of which has just been unveiled. So far 45,538 examples of the Puma have been registered, only around 90 ahead of the Kia Sportage.

2412 newcarsales04

Award Winners 2024

Share this article

Facebook
Twitter
LinkedIn
WhatsApp
Reddit
Email

Want more motoring news?

Sign up here for our free weekly serving of motoring.

Sign up here for our free weekly serving of motoring.

Picture of Andrew Charman

Andrew Charman

Andrew Charman has been a motoring journalist for more than 30 years, writing about vehicles, technology and the industry. He is a Guild of Motoring Writers committee member and has won several awards including for his business coverage.

Latest news

Top

Enter the 2024 awards

Showcase your achievements, gain industry recognition, and elevate your brand to new heights