AUS
NZ
UK
CA
USA
IND
Highlights:
- Price Cuts Insufficient: Despite £2 billion in discounts, EV sales risk missing the government's mandated 22% target for 2024.
- Industry Seeks Support: The SMMT and major carmakers call on the UK government to introduce measures in the Autumn Budget to support EV adoption.
- Rising Mandates: The mandated target will increase annually until 2030, with petrol and diesel cars phased out by 2035, putting more pressure on manufacturers.
The UK electric vehicle (EV) industry is at risk of missing the government's newly mandated sales target despite carmakers offering significant price cuts, industry body the Society of Motor Manufacturers and Traders (SMMT) warned on Friday. In an open letter addressed to Chancellor Rachel Reeves, SMMT chief executive Mike Hawes, supported by major carmakers like Volkswagen, Jaguar Land Rover, Ford, and BMW, urged the government to introduce measures in the Autumn Budget to boost the EV market and meet environmental targets.
Carmakers are expected to offer a total of £2 billion in discounts to promote EV sales, but this may still fall short of the requirement that 22% of all new car sales in 2024 must be electric. The SMMT noted that while EV sales have increased, they are not growing fast enough to meet the government’s ambitious targets. Manufacturers are at risk of facing fines if the targets are missed, leading to calls for government intervention.
Price Cuts Not Enough to Meet Mandated Sales Target
Despite steep discounts from carmakers, the UK EV market is struggling to meet the 22% mandated target set for 2024. According to the SMMT, carmakers are collectively offering £2 billion in discounts to encourage EV adoption. However, even with these efforts, the share of EVs sold so far this year remains at 17.8%, leaving a significant gap to reach the target by year-end.
Electric vehicle sales rose 24% in September to reach a record 56,000 units, but this boost was insufficient to push the overall market share above the mandated threshold. Mike Hawes expressed concern that, without additional support from the government, the industry could fall short of its environmental goals. "Market weakness is putting environmental ambitions at risk and jeopardising future investment," Hawes warned.
SMMT Urges Government to Support EV Market
In an open letter, the SMMT and major carmakers called on the UK government to unveil measures in the upcoming Autumn Budget to support the EV market. The letter highlighted the industry’s significant investment in EV production and market incentives, which are unsustainable without further assistance. Hawes emphasised that, without more support, the UK could miss key environmental goals and jeopardise future investments in green technologies.
The SMMT pointed to the government's plan to gradually increase the mandated EV sales target from 22% in 2024 to 80% by 2030, eventually phasing out the sale of new petrol and diesel vehicles by 2035. However, the current shortfall in sales is raising concerns about the industry’s ability to meet these targets.
Industry Faces Fines and Rising Pressure
The potential failure to meet mandated EV sales targets places manufacturers at risk of fines. The SMMT warned that the pressure on carmakers will only increase as the targets rise each year. Manufacturers are looking to the government for long-term solutions that can boost EV adoption and alleviate the financial burden of significant discounts and market incentives.
While the industry has made progress with a 24% rise in EV sales last month, the overall growth rate is still insufficient. As the EV mandate ramps up in the coming years, carmakers are urging the government to step in and provide the necessary support to ensure the UK meets its environmental targets.
