The UK’s new car market experienced its second consecutive year of growth in 2024, with 1,952,778 new cars registered, marking a 2.6% increase from 2023, according to the Society of Motor Manufacturers and Traders (SMMT).
However, the electric vehicle (EV) market share, while growing, faced challenges due to weak private demand.
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Fleet registrations drove the market growth, increasing by 11.8% to 1,163,855 units, which accounted for a record 59.6% of new car registrations.
In contrast, private buyer registrations fell by 8.7% to 746,276 units, a figure lower than during the pandemic-affected year of 2020.
Business sector registrations also saw a decline of 3.1% to 42,647 units.
December 2024 saw a strong performance for battery-electric vehicles (BEVs), with 43,656 new registrations making up 31% of the market.
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By GlobalDataThis performance brought the total BEV market share to 19.6% for the year, equating to 381,970 units, though this was still short of the 22% mandated target.
Despite significant manufacturer discounting totalling more than £4.5bn ($5.6bn) last year, the industry struggled to meet the EV sales mandate.
The SMMT said such discounting is “not sustainable in the long term”.
Investment in new technologies has resulted in 132 zero-emission vehicle (ZEV) models being available in the UK, a 38% increase since 2023, with an average range of nearly 450km.
Private buyer demand for EVs remained subdued, with only one in ten opting for an EV last year.
Petrol vehicles remained the most popular among private buyers, capturing 61% of demand, followed by hybrid-electric vehicles (HEVs) at 16%.
In contrast, businesses and fleets registered around 64,000 more BEVs than the previous year, with these vehicles comprising 25.4% of their total registrations.
Overall, pure petrol and diesel car registrations decreased by 4.4% and 13.6%, respectively, as more buyers transitioned to BEVs or lower-emission HEVs, which saw a 9.6% rise, and plug-in hybrids, which increased by 18.3%.
This shift contributed to a 6.2% reduction in average new car CO₂ emissions, now at 102.1g/km.
The challenge to meet the 2025 mandate thresholds, which require a 28% EV market share, will be significant, necessitating nearly a 50% increase in EV adoption.
Last month, the UK Government began a consultation on ending the sale of new petrol and diesel cars by 2030.
SMMT chief executive Mike Hawes 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 a 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.”
