- EVs hit a record 19.6% market share in 2024 but missed the 22% government-mandated target, falling short of 2025 aims.
- Fleet sales and tax incentives boosted EV growth, while private adoption lagged due to costs and infrastructure issues.
- Meeting the 2025 target of 28% EV sales requires stronger government incentives and faster chargepoint expansion.
After a record year for the UK’s EV market, what more needs to be done to hit our 2025 targets?
Electric vehicles hit a record 19.6% market share in the UK in 2024, with 381,970 new registrations. This marked a 21% increase from the previous year. December alone saw EVs take 31% of the market, the strongest performance since late 2022.
Despite these milestones, EV sales fell short of the government’s 22% target for zero-emission vehicles. Private buyers were a major hurdle. Only one in 10 private customers opted for an EV in 2024, with petrol cars dominating at 61% of private registrations. Businesses and fleets were more proactive, with EVs making up 25.4% of their purchases. Tax incentives for non-private buyers played a big role in this growth.
The automotive industry invested heavily to boost EV adoption. Manufacturers offered £4.5 billion in discounts throughout 2024. However, this strategy is unsustainable. Concerns about high upfront costs and limited charging infrastructure continue to discourage private consumers.
To meet the 2025 target of 28% EV sales, the market needs a 50% increase in demand.
Mike Hawes, SMMT Chief Executive, urged action:
“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 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.”
Better incentives for private buyers and faster charging network expansion are the key to hitting our targets. Without these measures, the UK risks stalling its progress toward net-zero goals. So, with 2025 underway, we have a refreshed idea of what we need to achieve as an industry in the next 365 days.
