A record year for EVs but at what cost to industry?

SMMT’s Mike Hawes calls on government to support electric vehicle transition

2024 delivered record levels of EV registrations with almost 382,000 joining UK roads, new data from SMMT shows, a fantastic achievement which reflects industry’s unswerving commitment to zero-emission mobility.

Indeed, with the overall new car market up by 2.6% last year, the very greenest vehicles represented almost one in five deliveries thanks to EV choice exceeding 130 model variants, impressive battery range averaging 280 miles, and attractive deals as manufacturers pushed hard to try and meet mandated targets.

The market still, however, fell short of the tough Zero Emission Vehicle (ZEV) Mandate target of 22% for the year, not helped by just one in 10 private consumers switching to an EV, with petrol by far the dominant powertrain for those buyers and, indeed, still the UK’s preferred powertrain in the month and over the course of the year.

Crucially, the shortfall came despite an enormous, and unsustainable, £4.5 billion worth of EV discounting by manufacturers to encourage consumers to switch. Nor was the transition significantly helped by a slowing rate of public chargepoint rollout in 2024, as new government figures show.

While higher volumes of chargepoints were installed than in the year before, the rate of growth declined, but must accelerate in 2025. The ZEV Mandate requires 28% of UK car sales by brand be EV this year – a 46% uplift over 2024. Chargepoint roll out needs to at least match this increase, moreover exceed it if it is to get ahead of need and give would-be EV buyers confidence.

Similarly, severe challenges were felt in the new light commercial vehicle (LCV) market, which grew by 3.0% last year but saw the proportion of zero-emission registrations remain at 6.3%, the same as 2023. That’s well below the 10% mandated and comes – again – despite vast manufacturer investment, with more than half of all 2024 van models available as electric and suiting every business need.

With the new car and van markets facing even steeper targets in 2025, we need rapid results from government’s review of the regulation. This not about watering down any commitments to EVs (the industry has already effectively “bet the farm” on the transition) but to ensure the targets are deliverable. Every lever must be pulled; urgent, substantive support for consumers, more accessible, affordable and reliable public charging – including van-suitable chargepoints and a reduction in cost,  most obviously in energy and VAT rates levied – to give all consumers, fleet operators and businesses the confidence to go electric.

EVs are crucial to decarbonisation and many also have the very latest connected and automated mobility features (CAM), which has huge potential to improve road safety, the motoring experience and deliver economic benefits. It’s been exciting this week, therefore, to see yet more massive automotive investment on show at CES, the major consumer electronics event in Las Vegas, and increasingly an autotech showcase. SMMT hosted government, industry and media stakeholders at a bespoke UK event, promoting our world-renowned capabilities in automotive engineering and developing cutting-edge technology, to a global audience.

There is huge growth potential in CAM and the UK can lead the way this year by accelerating new secondary regulation proposed in the Automated Driving Act 2024. The prize by 2040 is immense – saving 3,900 lives, preventing 60,000 serious accidents, economic growth worth £66 billion, and an additional 342,000 jobs created.

The UK took ambitious regulatory steps toward automated and decarbonised road transport in 2024. This year, government must take steps to support delivery. Industry is ready but we cannot do it alone.

Mike Hawes is chief executive of the Society for Motor Manufacturers and Traders