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The UK is competing with Germany to become Europe's biggest market for electric cars by 2024, after carmakers spent an estimated £4.5bn on rebates to encourage the switch away from internal combustion cars.
EVs accounted for 19.6 per cent of new cars sold in the UK last year, according to figures from the Association of Motor Manufacturers and Traders. This is higher than the 16.5 per cent seen in 2023 but still well below the 22 per cent target the UK wants. electric vehicle measurement scheme.
The total number of EVs sold in in the UK up 21 percent to a record 382,000 for the year, higher than the 347,048 sold in Germany between January and November. EV sales in Germany fell 26 percent last year after subsidies were cut. The annual sales figures will be released later this month.
“We will be fighting for the top spot,” said SMMT manager Mike Hawes. “It will be a buzzword and move between the two markets.”
The share of EV sales in the UK hit 31 percent in December, usually a quiet month for car sales where last-minute deliveries of EVs can boost their market share.
Despite the strong increase in sales, Hawes warned that sales demand for EVs remains soft, with only one in 10 private buyers choosing an electric model. That has forced many automakers to offer incentives to convince consumers to buy EVs, as they scramble to meet the government's “high-emissions vehicle mandate.”
The current system requires a certain percentage of automakers' annual sales to be zero-emission vehicles, with the percentage annually rising from 22 percent in 2024 to 28 percent this year, reaching 80 percent by 2030. for each lost vehicle.
“I would like to report that this has been a record year for sales of emission vehicles. “But when you set a goal and don't reach it, that's seen as failure,” Hawes said.
While the SMMT calculated that carmakers would need to spend £1.8bn to buy credits to avoid last year's charges, the Department for Transport said it was “confident” that the flexibility of the current scheme meant none of them would face financial penalties. the year 2024.
The ZEV order – made by the previous Conservative government when sales were expected to rise faster – has received significant criticism from the industry, which has warned that pushing too fast will cost jobs.
Labor ministers are now considering easing rules to make it easier for carmakers to meet the targets, and last month. started negotiations in the scheme.
The consultation will consider which hybrid cars can be sold alongside zero-emission models between 2030 and 2035, as well as extending a scheme where carmakers can buy credits from emitters to meet the target.
Even carmakers on track to meet the target warn that more incentives are needed to help the industry meet the ever-increasing target later in the decade.
Although anyone who buys an EV through the company's car program can get generous tax treatment, incentives for regular buyers were cut several years ago, which automakers say has made it harder to sell models that are often more expensive than gasoline.
Kia, which is on track to meet its 2024 and 2025 targets, has warned that it may need more help later.
“The change from 33 per cent in 2026 to 80 per cent in 2030 is a huge leap,” said UK chief Paul Philpott.
The brand, a subsidiary of South Korea's Hyundai Motor, reported record sales driven by demand for its hybrids and fully electric models.
“Incentives now can act as a real motivator to build that momentum quickly and make the target success in the coming years even clearer.”
The DfT said it had “invested more than £2.3bn to support business and consumers making the switch, rolled out more than 72,000 public chargers, and launched a consultation to invite the sector to shape how we achieve the switch to ZEVs”.