EV manufacturers could face £660m in fines
You can download more details on June’s data for the race for EV market share, brands who are quickest to electrify and regional UK highlights in the full release here
Latest UK electric car sales data shows EV car sales rose by 40% year-on-year in June, driven by running cost advantages and competitive leasing deals – even in a time of rising interest rates. Electric van sales dropped by 11% but steady growth is expected throughout the year thanks to the planned Zero Emissions Vehicle (ZEV) mandate.
New AutoMotive’s data estimates the 32 car manufacturers eligible for inclusion in the ZEV Mandate would collectively be 44,000 credits short of meeting their regulatory requirements if the 2024 target were in force in the last 12 months. This means they would have to either borrow or buy out of their regulatory obligations, raising around £660m in buy-out revenues.
Electric motorbike sales fell by 21% having struggled to make headway in sales since the scaling back of the plug-in motorbike grant in 2021. June saw the second highest number of electric HGVs registered in the UK on record – but to continue at this pace the industry urgently needs a specific policy framework.
Tesla tops the table for manufacturers with the most EVs registered year-on-year, bagging 17% of electric car registrations in the first six months of the year. It was followed by MG in second and Volkswagen in third place.
Ben Nelmes, Chief Executive at New AutoMotive, said on the Electric Car Count:
"Electric cars are so popular that manufacturers cannot produce enough of them to meet demand. Consumers tell us they love the running cost savings, the smoother drive and guilt-free motoring. The challenge facing the UK remains how to give consumers what they want: more electric cars.
"Ministers' plans for a California-style Zero Emissions Vehicle mandate are essential to boosting the supply of electric cars as well as boosting charge point installations - but they must come into force in January 2024 so consumers can benefit.
"Petrol registrations are falling significantly, while diesel registrations are now a niche part of the market, as consumers are abandoning polluting vehicles faster than the government is planning to phase them out."
Ciara Cook, Policy Officer at New AutoMotive, said on the Electric Van Count:
"Despite a disappointing month in sales of electric vans it is important that the government continues to accelerate its support for the segment, rather than put the brakes on.
"It is encouraging to see such a wide selection of electric van models on the market, with 49 models there’s plenty of choice for businesses. Businesses must be allowed to access the savings which owning an electric van will unlock. The Government needs to continue to offer the plug in grant to businesses so that they can access the savings from owning an electric van as quickly as possible.
"These figures show we need an ambitious ZEV mandate to push the industry forward and help more businesses access e-vans, to reduce their motoring costs in this financially uncertain period.