The UK electric vehicle market has experienced a substantial surge in growth, with new battery electric vehicle (BEV) registrations increasing by over 21% in 2024 compared to the previous year. In contrast, gas vehicle registrations have declined. However, Tesla, a leading electric vehicle manufacturer, has seen only a modest 1.5% growth in the same period.
Key Highlights
- BEV registrations grew by 57% in December and 21% throughout the year.
- Battery electric vehicles accounted for 19.6% of the UK market share in 2024, falling short of the government’s 22% target.
- Tesla’s sales in 2024 rose by a mere 1.5% to 50,334 units, while Chinese EV giant BYD Co saw a growth of over 600% to 8,788 units.
Industry Insights
According to Mike Hawes, Chief Executive of the Society of Motor Manufacturers and Traders (SMMT), the record year for EV registrations demonstrates the commitment of vehicle manufacturers to a decarbonized new car market. However, he notes that this has come at a significant cost, with billions invested in new models and generous incentives that are unsustainable. Hawes emphasizes the need for rapid results from the regulatory review and urgent support for consumers to avoid jeopardizing automotive investments, jobs, and net zero ambitions.
Regulatory Environment
The UK’s rules mandate that electric vehicles account for 28% of a carmaker’s new vehicle sales in 2025. The SMMT has called for an amendment to the regulation in light of the constrained market and slowing demand, while also urging the government to take measures to boost private demand.
Conclusion
The UK electric vehicle market is experiencing significant growth, but Tesla’s modest growth raises concerns about the company’s competitiveness in the market. As the industry continues to evolve, it is essential for manufacturers and regulators to work together to address the challenges and opportunities presented by the transition to electric vehicles.