Electric vehicle (EV) sales in the UK reached new heights in October, reflecting a significant rise in consumer demand as well as strategic shifts by manufacturers aiming to meet government emission targets. Data from the Society of Motor Manufacturers and Traders (SMMT) reveals a 24 per cent year-on-year increase of EV sales in the UK, which now represent over one-fifth of the total new vehicle registrations. Yet, the surge in EVs has not entirely masked a broader downturn, with the overall new car market shrinking as manufacturers prioritise the shift to zero-emission vehicles.
Electric Vehicles Outpace Other Segments
October’s electric vehicle sales saw pure EVs as the only growth segment in the market. Registrations for zero-emission vehicles reached nearly 29,000, a 24 per cent rise compared to October 2023’s 24,000 registrations. This increase pushed EVs to hold a 20.7 per cent market share, underscoring the growing consumer shift towards greener alternatives.
Why Are Petrol and Diesel Sales Dropping?
The overall car market experienced a 6 per cent drop in new registrations, falling from 153,000 last year to 144,000 in October 2024. Experts believe that this decline is partly due to manufacturers pulling back on petrol and diesel offerings as they work to comply with the UK government’s zero-emission vehicle (ZEV) mandate. Under this mandate, manufacturers face substantial fines for missing EV sales targets, prompting a shift in production and marketing emphasis towards battery-powered options.
Price Cuts and Discounting Fuel Electric Sales
Aggressive discounting has characterised EV sales this autumn, with October continuing a trend that began in September during the vehicle registration change period. As dealers work through a backlog of unsold electric models from the summer, prices have dropped, making EVs more accessible.
The SMMT highlighted that manufacturers are heavily subsidising these discounts, a tactic likely to be unsustainable in the long term. Analysts estimate that some electric models are now priced around 12 per cent lower than they were a year ago, helping to narrow the cost gap with traditional vehicles.
Efforts to Meet ZEV Targets on EV Sales in the UK
The UK’s ZEV mandate stipulates that electric vehicles must account for 22 per cent of all new car sales by 2024, with the threshold rising to 28 per cent by 2025. For each EV shortfall below this target, manufacturers face a penalty of £15,000, intensifying the push for manufacturers to boost EV sales now to avoid heavy fines in future years.
Ian Plummer, commercial director of Auto Trader, highlighted this trend: “Electric vehicles are taking a bigger share of the market, thanks to heavy discounting. Subdued petrol and diesel sales are likely to be driven by the efforts of manufacturers to hit sales targets under the ZEV mandate.”
UK Poised as European Leader in EV Market
Despite concerns about the sustainability of EV sales, some experts remain optimistic about the UK’s long-term position as a leader in Europe’s electric vehicle market. Dan Caesar, CEO of Electric Vehicles UK, noted that the ZEV mandate is positioning the UK as “the prime mover in Europe in 2025.” Caesar suggested that the lack of tariffs makes the UK an appealing market for EV manufacturers around the world, boosting confidence in the continued rise of electric car sales.
The Tesla Factor and Rising Competition
Tesla, traditionally the leader in the UK’s zero-emission car market, took a back seat in October. After a large shipment of vehicles in September inflated its quarterly figures, Tesla sales dropped by 63 per cent in October compared to the previous year, contributing to fewer than 1,000 registrations and only 3 per cent of total EV sales.
The EV landscape is becoming increasingly competitive, with other brands like BMW catching up quickly. Data from New AutoMotive consultancy shows that BMW sold 33,000 electric vehicles in the UK over the past year, not far behind Tesla’s 42,000. Mercedes-Benz, Audi, and the Chinese brand MG have each surpassed 20,000 EV sales, making the UK a diverse and growing market for electric vehicles.
Looking Ahead: A Green Future on the Horizon?
With EVs now claiming over a fifth of the new vehicle market and set to climb further under tightening regulations, the UK’s automotive landscape is rapidly transforming. As manufacturers race to meet ambitious zero-emission goals, consumers may continue to benefit from competitive pricing, while the government edges closer to its target of a cleaner, more sustainable transport future. The question now is whether the EV market can sustain this momentum in the face of challenges such as discount pressures and intensifying competition.
*All information correct as of 19 November 2024
