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European Alternative Fuels Observatory
News article15 January 2025

United Kingdom: becomes largest BEV market in Europe with 19,6% market share in 2024

UK 2024

The UK's new car market closed 2024 with 1,952,778 new car registrations, marking a 2.6% year-on-year increase, according to the Society of Motor Manufacturers and Traders (SMMT). This growth was driven exclusively by fleet purchases, which surged 11.8% and accounted for almost 60% of the market, highlighting the role of businesses in driving demand for zero-emission vehicles (ZEVs).

Overview

EV Market Trends

Battery electric vehicles (BEVs) hit an all-time high with 381,970 registrations, representing 19.6% of the market, an increase of 21.4% from 2023. However, this fell short of the 22% target mandated by the government. Plug-in hybrids (PHEVs) also saw an 18.3% rise, while hybrid electric vehicles (HEVs) increased by 9.6%.

Private demand for BEVs, however, lagged significantly, with only 10% of private buyers opting for electric cars in 2024. Petrol-powered vehicles remained dominant among private buyers at 61% of demand, followed by HEVs at 16%.

TOP models

Barriers to Growth

Despite the growing availability of 132 ZEV models with an average range of 280 miles, manufacturers have faced hurdles in stimulating private consumer demand. The industry spent over £4.5 billion on incentives in 2024, a level of support deemed unsustainable in the long term.

Business and fleet registrations provided a contrast, with BEVs representing 25.4% of purchases in these segments, supported by attractive tax incentives.

Infrastructure and Regulatory Challenges

One of the key constraints to further adoption has been the inadequate EV charging infrastructure, which continues to discourage private buyers. Chargepoint deployment has not kept pace with market demand, leading to concerns about charging availability, reliability, and cost.

In addition, the SMMT highlighted the need for adjustments to the ZEV mandate regulation. The 2024 BEV market fell short by 75,000 units compared to initial projections, putting pressure on the industry to achieve a more ambitious 28% ZEV target in 2025, requiring a nearly 50% increase in EV sales.

Call to Action

The SMMT called on the government to:

  • Stimulate private demand through financial incentives and targeted policies.
  • Accelerate the rollout of charging infrastructure, ensuring nationwide coverage that addresses potential buyer concerns.
  • Adjust the ZEV mandate regulation to reflect market realities and provide clarity on baseline CO2 figures.

 

Mike Hawes, Chief Executive of SMMT, emphasized:

"A record year for EV registrations underscores manufacturers' commitment to a decarbonized market. However, the level of support required to achieve this is unsustainable. Rapid regulatory reviews and substantial consumer support are critical to protecting investments and securing net zero ambitions."

 

Source:

Views and opinions expressed are those of the author(s) and do not reflect those of the European Commission.

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