Summary
- UK electric car sales hit record high in September, with 56,300 electric cars sold
- 20.5% of sales in September were electric cars
- Car manufacturers, including BMW, Ford, and JLR, advocate for government subsidies for EV sales
- Manufacturers have resorted to unprecedented discounting to meet ZEV mandate
- Environmental campaigners support ZEV mandate as it pushes carmakers to increase sales of electric cars, despite industry pressure for subsidies and tax cuts.
Article
UK electric car sales hit record high in September with 56,300 sales, accounting for 20.5% of all sales. Despite this, carmakers such as BMW, Ford, and JLR are pressuring the government for subsidies to meet the UK’s zero-emission vehicle mandate. Global demand for EVs has stalled, leading to delays in production from companies like Toyota, Ford, and Volvo. Manufacturers in the UK are offering significant discounts on electric cars to meet the mandate and avoid fines of up to £15,000 per vehicle for non-compliance.
The ZEV mandate aims to phase out petrol and diesel car sales and promote the switch to electric vehicles over the next six years. Sales of new diesel cars for private buyers have grown by 17.2% in September, compared to a 3.7% increase for pure battery electrics. The cost of compliance with the mandate is high, with manufacturers discounting electric cars by £2bn so far this year. Environmental campaigners support the ZEV mandate as it pushes carmakers to increase sales of electric cars.
September and March are crucial months for UK car sales due to the change in number plates, which prompts a wave of buyers. Electric car sales in September were particularly important as manufacturers scrambled to meet targets for 2024. The ZEV mandate requires carmakers to achieve a target of 22% pure electric sales, with the industry currently hitting 17.8% for the year. Car manufacturers have called for subsidies for electric cars to stimulate demand and meet targets, with some suggesting a reduction in annual targets or taxes such as VAT.
There are clauses in the ZEV mandate allowing carmakers to buy credits from competitors who have exceeded their targets, such as Tesla and BYD. Carmakers can also earn credits by over-complying in later years or by reducing emissions from petrol cars. Despite concerns from industry leaders about meeting targets, some believe that fines for non-compliance in 2024 are unlikely for the industry as a whole. The ZEV mandate is set to tighten every year until 2030 when sales of new petrol and diesel cars will be banned, with some hybrids allowed until 2035.
Overall, the ZEV mandate is driving an increase in electric car sales in the UK, with a record number of registrations in September. Industry leaders are calling for government subsidies to help meet targets and stimulate demand for electric vehicles. While there are challenges in meeting the mandate and transitioning to electric cars, including delays in production and competition from other manufacturers, the push for zero-emission vehicles is seen as crucial for reducing carbon emissions and tackling climate change in the automotive industry.
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