The UK car industry achieved a milestone in 2024, selling a record 382,000 battery electric vehicles (BEVs), but fell short of the government’s mandated target for carmakers, according to the Society of Motor Manufacturers and Traders (SMMT). Electric vehicles accounted for 19.6% of new car sales, below the government’s 22% benchmark.
The shortfall risks penalties of €15,000 ($18,625) per non-compliant vehicle, but the government has assured manufacturers can avoid fines through flexibility mechanisms, which consider emissions reductions across entire fleets.
Mike Hawes, SMMT’s chief executive, highlighted the substantial financial burden on the industry, citing billions invested in new models and unsustainable incentives to encourage EV adoption. He called on the government to review its targets and improve charging infrastructure to stimulate private demand.
The challenge intensifies for 2025, with mandates increasing to 28% of car sales. The industry is also bracing for the Labour government’s proposed plan to accelerate the ban on petrol and diesel vehicle sales to 2030, five years earlier than the Conservative government’s target.
New vehicle registrations in the UK rose to nearly 2 million in 2024, a 2.6% year-on-year increase, driven mainly by business purchases as private demand declined. Despite the growth, the overall car market remains below pre-pandemic levels.
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