EV sales hit record in UK but still behind target

An industry trade group said on Saturday that although the UK auto sector sold a record number of all-electric vehicles in 2024, it still failed to meet the government’s set goals.

According to the Society of Motor Manufacturers and Traders, battery electric vehicles accounted for 19.6% of new car sales last year, falling short of the government’s 22 percent goal for automakers.

A “record annual volume” of 382,000 battery electric vehicles were sold in the UK last year, according to the SMMT.

The auto trade association had already issued a warning in October that automakers risked missing government standards, threatening to be fined oe15,000 ($18,625) for each polluting vehicle sold over the restrictions.

However, the government has since assured that it expects all manufacturers to avoid the penalties in 2024 by taking advantage of flexibility mechanisms which will take into account, among other things, emissions reductions across the whole fleet.

The group’s chief executive, Mike Hawes, said that while the market share of electric vehicles grew, this came at a “huge cost” to the industry.

He referred to the “billions invested in new models” supplemented by “unsustainable” incentives provided by the industry.

Hawes called on the government to reevaluate the mandate and take additional steps, such as enhancing the infrastructure for charging, to boost private demand.

With the mandates increased to 28 percent of automobiles sold, the SMMT also cautioned that it will be “even more intense” to meet the thresholds in 2025.

The Labour government’s promise to move the prohibition on the sale of new gasoline and diesel automobiles to 2030 after the previous Conservative government moved it back to 2035 has also raised worries.

Overall, the SMMT reported that the number of new vehicles registered in the UK increased to almost 2 million, up by 2.6 percent year-on-year.

It said that growth was mainly driven by business purchases as demand from private buyers dropped.

Despite a second successive year of growth, the overall car market remains below pre-pandemic levels.