UK vies with Germany to be European EV champion

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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 £4.5 billion in discounts to move away from internal combustion vehicles.

According to figures from the Society of Motor Manufacturers and Traders, EVs accounted for 19.6 per cent of new cars sold in the UK last year. This is higher than the 16.5 percent seen by 2023 but well short of the 22 percent target required by the UK. Electric vehicles Quota scheme.

Total EVs sold UK Sales rose 21 percent year-on-year to a record 382,000, up from 347,048 sold in Germany between January and November. EV sales in Germany fell 26 percent last year after subsidies were cut An annual sales figure is due out later this month.

“We will compete for the top spot,” said SMMT boss Mike House. “It’s a touch and go between the two markets.”

The share of EV sales in the UK reached 31 percent in December, which is often a quiet month for car dealers where last-minute deliveries of EVs can inflate their market position.

Despite strong sales growth, House cautioned that retail demand for EVs remains sluggish, with one in 10 private consumers opting for an electric model. This has forced many automakers to offer incentives to persuade consumers to buy EVs, as they scramble to meet the government’s “zero emission vehicle mandate.”

The current scheme requires a certain percentage of each carmaker’s annual sales to be zero-emission vehicles, with the percentage rising annually from 22 percent in 2024 to 28 percent this year and 80 percent in 2030. Companies face a fine of £15,000 For each missed vehicle.

“I would like to make a very positive statement that it was a record year for zero emission car sales. But when you set a goal and you don’t meet it, it’s seen as a failure,” Hawes said.

Although the SMMT calculated that carmakers would have to spend £1.8bn to buy credits to avoid last year’s penalties, the Department for Transport said it was “confident” that flexibility in the current scheme meant that none of them would face financial penalties in 2024.

The JEV mandate – created by the previous Conservative government when sales were expected to grow sharply – has drawn significant criticism from the industry, which has warned that pushing too fast would cost jobs.

Labor ministers are now considering easing rules to make it easier for carmakers to meet targets, and last month A suggestion has been launched On the scheme.

The consultation will consider which hybrid cars can be sold alongside zero-emission models between 2030 and 2035, as well as expanding a scheme where carmakers can buy credits from rivals to meet the targets.

Even automakers that are on track to meet the targets warn that more incentives are needed to help the industry meet rising targets later in the decade.

While anyone buying an EV through the company car scheme can get generous tax treatment, mainstream consumer purchase incentives were wound up several years ago, something carmakers say has made it harder to sell models that are often more expensive than their petrol equivalents.

Kia, which is on track to hit its 2024 and 2025 targets, warned it may need more support after that.

“The transition from 33 per cent in 2026 to 80 per cent in 2030 is a big leap,” UK chief Paul Philpott said.

The brand, an affiliate of South Korea’s Hyundai Motor, reported record sales driven by demand for its hybrid as well as fully electric models.

“An incentive now would act as a really positive catalyst to build that momentum even faster and make it easier to achieve the goals in future years.”

The DfT said it had “invested more than £2.3bn to help industry and consumers make the switch, built more than 72,000 public chargers, and launched a consultation inviting the sector to shape how we achieve the transition to ZEVs. did”.