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The UK 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.1 The far smaller
business sector saw uptake fall by -3.1% to 42,647 units.
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 20242, an amount that 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.3
One of the major constraints to growth, however, 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%).
Consequently, average new car CO2 has fallen
by -6.2% to 102.1g/km. While this will assist some
manufacturers with mandate compliance, the extent to
which it will help will remain unclear until confirmed
baseline CO2 figures are provided by
government. Meeting the mandate thresholds in 2025 will
be even more intense as the target is now 28% – requiring
an EV market uplift of just under 50%.
Action is needed now to amend the regulation to reflect
the reality of a constrained market and ZEV demand
failing to grow in line with expectations. When the
previous government drew up plans for a mandate the 2024
BEV market was forecast to be almost 20% – or some 75,000
units – larger than has eventuated.4 With
manufacturer support at record but unstainable levels,
government must do more to stimulate private demand and
challenge chargepoint operators to accelerate rollout,
ensuring the UK has a reliable, affordable and
comprehensive nationwide network of infrastructure that
dispels any doubts potential EV buyers may harbour so
ever more drivers will make the switch.
Mike Hawes, SMMT Chief Executive, said,
“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.”
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