Summary
- Plugin EVs had a 40.0% market share in the UK in December, up from 28.7% year-on-year
- BEVs grew strongly to meet the 2024 ZEV mandate
- The UK’s leading BEV brand in December was Tesla, with a 20.9% share
- The ZEV mandate for 2024 required auto makers to sell a target of "22% ZEVs"
- The UK’s auto market is evolving with the tightening ZEV mandate, leading to changes in BEV market shares
Article
In December 2024, the UK’s auto market saw plugin EVs, both full electrics (BEVs) and plugin hybrids (PHEVs), take a 40.0% share of the market, with BEVs alone capturing a near record 31.0% share. This increase was driven by the 2024 Zero Emissions Vehicles (ZEV) mandate, which required automakers to sell a certain percentage of ZEVs throughout the year. The top BEV brand for the month was Tesla, with a 20.9% market share.
For the full year of 2024, the UK saw a 19.6% share of BEVs, surpassing the ZEV mandate target of 22% with the help of various fudges that allowed credits to be bought and sold between manufacturers. The excess of credits meant that automakers like Toyota, Mazda, Ford, and Renault could purchase ZEV credits from companies like Tesla and Polestar to meet their targets and avoid fines. Going forward, the ZEV scheme will become stricter, with a target of 28% ZEVs in 2025.
In terms of best-selling BEV brands, Tesla remained at the top of the list in December, with the Tesla Model Y becoming the best-selling vehicle overall for the month. Volkswagen and Audi also made significant pushes in December, with Audi’s Q4 e-tron ranking as the UK’s third best-selling BEV model. Brands like Mercedes, Peugeot, and Vauxhall/Opel adjusted their sales strategies based on their standing in relation to the ZEV mandate.
Looking at the full year rankings, Tesla remained the top-selling BEV brand in the UK, followed by BMW. As the ZEV mandate continues to tighten, large legacy brands like Volkswagen, Ford, and Toyota will need to improve their BEV offerings to keep up with the market. The UK’s EV transition has been on a different rhythm compared to neighboring countries, where emissions targets remained more lax in 2024, providing various challenges and opportunities for automakers.
Overall, the UK’s auto market is evolving with the ZEV mandate setting a minimum bar for the EV transition. As automakers prepare for the tighter targets in 2025, the industry faces changes and challenges in meeting the increasing demand for electric vehicles. The role of traditional big legacy brands in the UK market remains uncertain, as they may need to rely on purchasing credits from specialist EV brands to meet their targets.
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