Record EV market share but private demand slumps
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New car registrations reached 1.953 million in 2024 with market up 2.6% year on year.
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EVs take record annual volume and market share at 19.6%, but below mandated levels.
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Private consumer demand contracts with just one in 10 private buyers going electric in 2024.
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Industry welcomes review of mandate regulation but warns current demand will not deliver ambition without government support.
The UK’s new car market recorded its second successive year of growth with 1,952,778 new cars reaching the road in 2024 – a rise of 2.6% on the previous year, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).
In the final month of the year, the market remained flat at 140,786 units, a marginal -0.2% decline, capping off a challenging year for the sector as manufacturers strove to create demand for electric vehicles in a bid to meet new mandated sales targets.
Over the full year, growth was delivered entirely by fleets, up 11.8% to reach 1,163,855 units, accounting for a record six in 10 (59.6%) new car registrations. Conversely, registrations by private buyers fell by -8.7% to 746,276 units – less than in 2020 when social distancing restrictions during the pandemic shut down the market for three months.
The first year of mandated targets for new zero-emission vehicles finished with another strong December performance, with 43,656 new battery electric vehicle (BEV) registrations accounting for 31.0% of the market – the highest since December 2022’s record 32.9%. As a result, BEVs made up 19.6% of the market (381,970 units) in 2024, up by more than a fifth (67,283 units) from last year, but short of the 22% demanded by the mandate.
Industry has pulled every lever to try and achieve this target, with manufacturer discounting totalling more than £4.5 billion in 2024, an amount that the SMMT claims is not sustainable in the long term. Billions of pounds of investment in new technologies and products over the past decade have delivered a record 132 ZEV models to the UK market, up 38% since 2023 to account for a third of all models available, with an average range of almost 280 miles – more than two weeks’ of driving for most people.
However, one of the major constraints to growth has been lacklustre demand by private buyers, with only one in 10 choosing an EV in 2024. Petrol remained the most popular powertrain among these buyers, commanding 61.0% of demand, with hybrid electric vehicles (HEVs) in second place (16.0%). Conversely, around 64,000 more BEVs were registered by businesses and fleets than a year ago, with such vehicles representing a quarter (25.4%) of those segments’ registrations and demonstrating the effectiveness of the compelling tax incentives afforded non-private buyers.
Across the total market, pure petrol and diesel car registrations fell by -4.4% and -13.6% respectively as more buyers swapped either to BEVs, or to lower emission hybrid electric vehicles (up 9.6%) and plug-in hybrids (up 18.3%).
Says Mike Hawes, SMMT Chief Executive:
“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. This has come at huge cost, however, with the billions invested in new models being supplemented by generous incentives which are unsustainable.
“We need rapid results from the regulatory review and urgent substantive support for consumers – else automotive investments will be at risk and the jobs, economic growth and net zero ambitions we all share in jeopardy.”
Adds a Department for Transport spokesperson:
“December has yet been another record month for new electric cars, with nearly one in three of all vehicles sold being battery electric and 382k EVs sold across 2024”.
“We’ve invested over £2.3 billion to support industry and consumers make the switch, rolled out more than 72,000 public chargers, and launched a consultation to invite the sector to shape how we achieve the transition to ZEVs.
“Getting this transition right as more people make a switch to electric vehicles will support the growth of the UK market and will provide an opportunity to tap into a multibillion-pound industry that will create high-paid jobs for decades to come.”
