{"id":54385,"date":"2025-01-10T11:25:35","date_gmt":"2025-01-10T11:25:35","guid":{"rendered":"https:\/\/www.innovationnewsnetwork.com\/?p=54385"},"modified":"2025-01-10T11:25:35","modified_gmt":"2025-01-10T11:25:35","slug":"uk-experiences-record-ev-market-share-but-falls-short-of-government-targets","status":"publish","type":"post","link":"https:\/\/www.innovationnewsnetwork.com\/uk-experiences-record-ev-market-share-but-falls-short-of-government-targets\/54385\/","title":{"rendered":"UK experiences record EV market share but falls short of government targets"},"content":{"rendered":"

The UK\u2019s automotive landscape is undergoing a pivotal transformation as the push toward electric vehicles (EVs) gains momentum.<\/h2>\n

In 2024, the new car market experienced its second consecutive year of growth, with nearly two million vehicles sold \u2013 a clear sign of recovery and resilience. Yet, beneath the surface of these positive numbers lies a complex story of ambitious zero-emission vehicle (ZEV) mandates<\/a>, uneven consumer demand, and mounting pressure on manufacturers to deliver.<\/p>\n

As the EV market share continues to grow, driven by advances in technology and increasing government targets, the industry faces a critical juncture. Private buyers remain hesitant, infrastructure gaps persist, and the 2025 mandate looms with even more demanding requirements.<\/p>\n

According to the Society of Motor Manufacturers and Traders (SMMT), these challenges highlight the complex dynamics of transitioning to a zero-emission future.<\/p>\n

Mike Hawes, SMMT Chief Executive,\u00a0commented: \u201cA record year for EV registrations underscores vehicle manufacturers\u2019 unswerving commitment to a decarbonised new car market, with more choice, better range and increased affordability than ever before.<\/p>\n

\u201cThis has come at a huge cost, however, with the billions invested in new models being supplemented by generous incentives which are unsustainable.<\/p>\n

\u201cWe need rapid results from the regulatory review and urgent substantive support for consumers \u2013 else automotive investments will be at risk and the jobs, economic growth and net zero ambitions we all share in jeopardy.\u201d<\/p>\n

A year of marginal gains and mandated targets<\/h3>\n

December 2024 capped off the year with 140,786 new car registrations, a marginal -0.2% decline compared to the same month in 2023.<\/p>\n

Despite this, battery electric vehicles (BEVs) made a strong showing in December, accounting for 31% of the market \u2013 the highest monthly share since December 2022.<\/p>\n

For the entire year, BEVs comprised 19.6% of new car registrations, amounting to 381,970 units. This marked a 67,283-unit increase over the previous year but fell short of the government-mandated 22% target for zero-emission vehicles (ZEVs).<\/p>\n

With 2025\u2019s target set at an even more ambitious 28%, the pressure on the EV market to expand its share by nearly 50% is mounting.<\/p>\n

Hybrid electric vehicles (HEVs) and plug-in hybrids (PHEVs) saw notable growth. HEV registrations rose by 9.6%, while PHEVs experienced an 18.3% increase.<\/p>\n

These vehicles serve as transitional technologies, offering reduced emissions while mitigating some of the barriers to full EV adoption, such as high upfront costs and charging infrastructure limitations.<\/p>\n

Meanwhile, registrations for pure petrol and diesel vehicles continued to decline, falling by -4.4% and -13.6%, respectively. This trend reflects a gradual shift toward greener alternatives, even as the market grapples with meeting ZEV mandates.<\/p>\n

EV market share analysis<\/h3>\n

A critical factor hindering the EV market\u2019s growth is the lacklustre demand among private buyers.<\/p>\n

Only 10% of private purchasers opted for EVs in 2024, with petrol-powered vehicles remaining the top choice, commanding 61% of the market share.<\/p>\n

Hybrid electric vehicles (HEVs) followed at 16%, reflecting the appeal of lower emissions without fully transitioning to electric.<\/p>\n

In contrast, business and fleet buyers displayed stronger adoption of BEVs, with registrations up by approximately 64,000 units compared to 2023.<\/p>\n

These vehicles represented 25.4% of fleet registrations, demonstrating the effectiveness of tax incentives tailored to non-private buyers.<\/p>\n

This stark divide between private and corporate demand underscores the need for more targeted strategies to encourage EV adoption among everyday drivers.<\/p>\n

Industry efforts to boost EV adoption<\/h3>\n

The automotive industry has invested heavily in accelerating the shift to EVs<\/a>, introducing a record 132 ZEV models to the UK market in 2024 \u2013 a 38% increase compared to the previous year.<\/p>\n

These models offer an average range of nearly 280 miles, addressing range anxiety concerns and catering to typical driving needs.<\/p>\n

To stimulate EV uptake<\/a>, manufacturers provided significant discounts, totalling over \u00a34.5 billion in 2024. While these incentives have helped boost sales, SMMT says they are financially unsustainable in the long term.<\/p>\n

The reliance on heavy discounting highlights the need for government intervention to support the market.<\/p>\n

The role of infrastructure and policy<\/h3>\n

One of the most pressing challenges for expanding EV market share is the need for a robust and accessible charging infrastructure<\/a>.<\/p>\n

Despite advancements, the current charging network remains insufficient to instil confidence in potential EV buyers. Expanding this network is critical to addressing concerns about range and convenience, particularly in rural and underserved areas.<\/p>\n

Moreover, the shortfall in BEV registrations compared to government forecasts \u2013 75,000 fewer units than anticipated \u2013 signals a disconnect between policy expectations and market realities.<\/p>\n

SMMT is calling on policymakers to adjust regulations to reflect actual demand and provide stronger incentives for private buyers, such as purchase subsidies or reduced tax burdens.<\/p>\n

Actions needed to boost EV market share<\/h3>\n

To meet the 2025 mandate of 28% ZEV market share, urgent action is required. Key measures raised by SMMT include:<\/p>\n

    \n
  1. Stimulating private demand:<\/strong> Additional incentives, such as grants or tax reductions for EV buyers, could help close the gap between private and fleet adoption rates.<\/li>\n
  2. Accelerating infrastructure development:<\/strong> Chargepoint operators must expand the network to provide reliable, affordable, and accessible charging options nationwide.<\/li>\n
  3. Revisiting mandate goals:<\/strong> Policymakers should recalibrate targets to reflect realistic market conditions while maintaining pressure for progress.<\/li>\n<\/ol>\n

    The transition to a zero-emission future hinges on collaborative efforts between manufacturers, policymakers, and infrastructure developers.<\/p>\n

    With bold action and strategic investment, the UK can achieve its EV market share goals and solidify its position as a leader in sustainable mobility.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Explore how the UK’s EV market share grew in 2024 but fell short of ambitious targets, revealing the challenges and opportunities.<\/p>\n","protected":false},"author":15,"featured_media":54386,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[24425],"tags":[24404,652],"acf":[],"yoast_head":"\nUK experiences record EV market share but falls short of targets<\/title>\n<meta name=\"description\" content=\"Explore how the UK's EV market share grew in 2024 but fell short of ambitious targets, revealing the challenges and opportunities.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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