Discounts drive UK’s EV growth – now 1 in 4 cars are electric
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UK’s new car market declines by -1.9% in November with 153,610 deliveries made.
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EV uptake rises as manufacturers continue unprecedented discounts totalling £4 billion this year.
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Industry welcomes urgent review of market regulation and incentives to deliver successful transition.
Deliveries of new cars fell by 1.9% in the UK during November with 153,610 joining the road, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).
It is the second consecutive monthly decline, and the third decline in four months, as the market contracts amid the race to meet tough EV market share targets.
Demand from private buyers, among whom uptake has waned for two years, dropped by -3.3% to 58,496 units, accounting for fewer than four in 10 (38.1%) new registrations. Fleet purchases, which represent the bulk (59.9%) of the market, fell by -1.1% to 91,993 units, while low-volume business demand rose by 5.2% to 3,121 units.
November saw double-digit falls in registrations of petrol (-17.7%) and diesel (-10.1%) cars, with petrol remaining the most popular powertrain. Hybrid and plug-in hybrid uptake also declined, by -3.6% and -1.2% respectively.
However, Battery electric vehicle (BEV) registrations rose for an eleventh successive month, up 58.4% to 38,581 units, representing 25.1% of the overall market, albeit driven by heavy manufacturer discounting. With the best market share since December 2022, November is just the second month this year in which BEV uptake has reached mandated levels, albeit against the backdrop of a declining overall market.
Manufacturers are committed to the mandate’s ambition, but market demand for EVs remains weak and below the levels expected when the previous government drew up the regulation. 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% – however still short of the 22% mandated target for the year.
This year’s growth cements Britain as Europe’s second biggest new BEV market by volume and closing the gap on leader Germany. It reflects long-term manufacturer investment in new models, with more than 130 zero-emission choices now available – up more than 42% on a year ago – on which the sector is offering record discounts.
While this is providing some success, the scale of discounting, worth some £4 billion across 2024, is unsustainable and poses a risk to future consumer choice and UK economic growth, claims the SMMT.
Says Mike Hawes, SMMT Chief Executive:
“Manufacturers are investing at unprecedented levels to bring new zero emission models to market and spending billions on compelling offers. Such incentives are unsustainable – industry cannot deliver the UK’s world-leading ambitions alone.
“It is right, therefore, 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. Ambitious regulation, a bold plan for incentives and accelerated infrastructure rollout are essential for success.”
Adds Minister for the Future of Roads, Lilian Greenwood:
“Today’s data shows one in four of every car sold in November was electric. This is fantastic progress and clearly shows our £2.3 billion support for industry is helping more and more people make the switch to EVs.
“There are now more than 71,000 public chargers in the UK, and we continue to work with the sector to make the transition a success, support jobs, and drive growth”
