9:36 am, December 5, 2024
Registrations of new cars fell by nearly 2% last month as carmakers raced to hit the tough ZEV mandate, new data shows.
The latest registrations figures from the Society of Motor Manufacturers and Traders (SMMT) shows numbers slipped by 1.9% in November.
Just over 153,600 cars rolled off forecourts, with November being the second consecutive month of decline and the third decline in four months.
Uptake of EVs rose as carmakers slashed prices and offered discounts totalling £4bn so far this year.
Battery electric vehicle registrations soared by 58.4% to 38,581 units, representing 25.1% of the overall market.
The SMMT said that November was only the second month where BEV uptake reached the mandated 22% level.
Demand for EVs ‘remains weak and below the levels expected when the regulation was drawn up by the previous government’, said the body.
The SMMT now expects BEV market share to be 18.7% – over 3% short of the ZEV mandate target, but a strong December could bump that up to 19%.
Registrations of petrol cars fell by 17.7%, diesel by 10.1%, and hybrids and plug-in hybrids dropped by 3.6% and 1.2% respectively.
Demand from private buyers dropped again in November by 3.3%, while fleet purchases fell 1.1%.
The SMMT called for more government support for consumers such as faster deployment of adorable, accessible and reliable charging infrastructure, along with ‘workable regulation’.
The organisation estimates BEV registrations will need to grow by an additional 53% in 2025 if next year’s 28% mandated target is to be met.
The Mini Cooper was the month’s best-seller with 4,412 registrations to its name, followed by the Nissan Qashqai (3,776) and Tesla’s Model Y (3,350).
The Ford Pumas remains the year’s best-seller to date at 45,538, but the Kia Sportage is less than a hundred units behind in second.
Mike Hawes, SMMT chief executive, said: ‘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, else UK jobs, investment and decarbonisation will be at further risk.’
What the industry thinks
Strengthening consumer confidence in EVs is crucial
The rise in [EV] share is a clear indication of the collective efforts from manufacturers and retailers who are providing substantial incentives to buy electric. However, to sustain this momentum, it’s crucial that we continue to strengthen consumer confidence in EVs.
Fleet registrations continue to drive the new car market but there is still a reasonable level of demand from private retail, reflecting the decent availability and increasingly attractive offers.
Ian Plummer, Auto Trader
Outlook is positive
The SMMT registration figures show demand for battery electric vehicles (BEVs) continues to strengthen, and our data suggests there are clear reasons for optimism as we approach 2025.
This year has seen a welcome continued return of new car supply, and consumers are responding positively as a result. EV configurations and sales via Carwow have risen steadily throughout 2024, helped by the lower prices that have resulted from discounts introduced by OEMs in an effort to reach their ZEV targets. If demand continues on the same trajectory, the UK is heading for continued strong growth in the EV market in 2025.
Philipp Sayler von Amende, Chief Commercial Officer – Get Your Car, at Carwow
A pragmatic approach to EV uptake is needed
It’s great to see more electric vehicles hitting the roads in November, highlighting their steady and continued growth in popularity. The government’s decision to consult on the Zero Emission Vehicle mandate could also be an opportunity to refine the implementation of the mandate, ensuring a smooth and sustainable transition.
A pragmatic approach to the ZEV mandate, alongside incentives for both manufacturers and consumers, will be crucial to drive electric vehicle uptake. However, key economic indicators such as consumer confidence, inflation, and interest rates will continue to play a significant role in purchasing decisions.
We also need to be realistic – people need to be able to afford electric vehicles, have somewhere to charge them, and know the lights will stay on when they plug in. Get those basics right and we’ll see a much faster shift to a greener future.
Jamie Hamilton, automotive partner and head of electric vehicles, Deloitte
