According to the Society of Motor Manufacturers and Traders (SMMT), one in four cars sold in the UK last month was electric, marking the 11th consecutive monthly increase in EV registrations. However, this growth came at a cost, with manufacturers offering £4 billion in steep discounts to meet tough Government sales targets.
Current rules require carmakers to ensure 22% of new car sales are electric by 2024, but the industry needs help to meet the mark. EVs accounted for 18.7% of sales in 2023 and are forecasted to reach only 19% by year-end. To avoid fines, manufacturers can purchase credits from firms exceeding targets or carry forward credits from future quotas.
Fleet sales drove most EV demand, although total car sales fell, including declines in private purchases. Sales of petrol cars dropped 17%, diesel by 10%, and hybrids by 3%, while plug-in hybrids fell 1%.
Brands like Vauxhall, Peugeot, and Renault outperformed the Government targets, with EVs making up 36%, 29%, and 27% of their sales respectively. However, major manufacturers like Ford and Stellantis warn that hitting future targets will require additional customer incentives.
The Government, insisting targets won’t be weakened, has agreed to meet with manufacturers to discuss potential flexibilities. Despite challenges, UK-based firms like Jaguar Land Rover continue embracing the shift to electric, cementing the EV revolution as central to the industry’s future.
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