Electric cars accounted for more than a fifth of all new cars registered in January, despite the overall market shrinking for the fourth month in a row, latest industry figures reveal.
Data from the Society of Motor Manufacturers and Traders (SMMT) shows 139,345 new cars were registered last month, a 2.5 per cent drop compared to January 2023. Both private and fleet sales saw declines, falling 0.5 per cent and 3.7 per cent respectively.
Despite the downturn, battery-electric vehicles (BEVs) surged by 41.6 per cent, securing a 21.3 per cent market share. Hybrid and plug-in hybrid registrations also saw strong growth, with market shares of 13.2 per cent and 9.0 per cent respectively. However, BEV uptake remains just below the government’s 22 per cent target for 2024 and significantly short of the 28 per cent mandate for 2025.
Industry calls for EV tax rethink
The SMMT has renewed calls for an urgent review of the Vehicle Emissions Trading Scheme, warning that without action, manufacturers could face financial penalties that could stifle market growth. The industry body has also criticised the upcoming expansion of the Expensive Car Supplement, which from April will apply to new EVs costing more than £40,000. With many electric models exceeding this threshold, the additional tax could further impact demand.
Diesel and petrol market share declines. Again.
Diesel registrations dropped 7.7 per cent, leaving the fuel with just 6.2 per cent of the market. Petrol suffered the sharpest decline, falling 15.3 per cent, though it still accounts for more than half of all new cars sold.
Looking ahead, the SMMT forecasts that total UK new car registrations will decline slightly in 2025 to 1.95 million units, with BEV sales expected to grow by 20.9 per cent to 462,000 units. However, this would still leave EV market share at 23.7 per cent, well short of the mandated 28 per cent set by the Zero Emission Vehicle (ZEV) Mandate.
Kia Sportage leads early 2025 sales race
The Kia Sportage emerged as the UK’s best-selling car in January with 3,476 units registered, narrowly beating the Nissan Qashqai (3,421) and the Vauxhall Corsa (3,379). Nissan topped the brand leaderboard, thanks to strong performances from the Qashqai and Juke, with the latter adding another 2,320 registrations.
‘Wrong measure at the wrong time’
Commenting on the latest figures, SMMT chief executive Mike Hawes said: “EV demand is growing – but not fast enough to meet current targets. Affordability remains a major barrier, which is why applying the Expensive Car Supplement to EVs is the wrong measure at the wrong time. Instead of penalising buyers, we should be doing everything possible to encourage more drivers to make the switch.”
