‘The ZEV mandate is working’: Electric vehicles claim 17.9 per cent market share in May

Battery electric vehicle (EV) sales continued to outperform the wider car market in May, growing 6.2 per cent last month thanks in large part to strong ongoing demand from fleet managers, the latest figures released today show.

The latest sales data published by trade body the Society of Motor Manufacturers and Traders (SMMT) show pure EVs claimed at 17.6 per cent share of the car market in May 2024, up from 16.9 per cent during the same month last year, with over 24,500 units sold.

Uptake was largely driven by corporates and the fleet sector, where EV sales volumes rose 10.7 per cent last month compared to the previous year.

Consumer EV sales from individual drivers, however, fell by two per cent in May, just 98 registrations short on last year’s figures for the month, according to SMMT.

The trade body described the growth in the overall market share for EVs last month as “encouraging”, but pointed out that this remained below the trajectory needed under the Zero Emission Vehicle Mandate, which requires that 22 per cent of new vehicles sold this year are electric.

There are now more than 100 EV models for consumers and companies to choose from on the market, but SMMT said the latest sales figures showed the UK automotive sector would need additional support – such as enhanced consumer incentives – from the next government if it is to comply with the ZEV Mandate this year.

Specifically, SMMT urged whichever party leads the government after the upcoming General Election to halve VAT on new EV purchases, slash VAT on public EV charging, and to private universal access to incentives such as battery car grants in order to accelerate uptake and allow manufactures to invest in the next generation of zero emission vehicles.

“As Britain prepares for next month’s general election, the new car market continues to hold steady as large fleets sustain growth, offsetting weakened private retail demand,” said SMMT chief executive Mike Hawes. “Consumers enjoy a plethora of new electric models and some very attractive offers, but manufacturers can’t sustain this scale of support on their own indefinitely. Their success so far should be a signpost for the next government that a faster and fairer transition requires carrots, not just sticks.”

The figures show that while deliveries of both petrol and diesel cars fell last month, demand for all forms of electrified vehicles rose, with plug-in hybrids (PHEVs) recording the highest growth of all powertrains, up 31.5 per cent to reach an eight per cent market share.

Hybrid EV sales also rose by 9.6 per cent last month, maintaining their status as the third most popular fuel type after petrol and battery electric at 13.2 per cent of the market.

SMMT’s figures broadly align with sales estimates produced by EV non-profit New AutoMotive this week, which demonstrate the battery vehicle market is continuing to enjoy its best ever start to a calendar year, with 2024 sales to date 10 per cent higher than the same period last year.

As a result, New AutoMotive said the car industry now only needed to sell an additional 1,800 EVs per month between June and December this year in order to meet the ZEV mandate sales targets for 2024.

Such growth comes despite the continued fall in sales from market leader Tesla, with BMW now on course to soon overtake the American EV giant, while the likes of Nissann Vauxhall, and Peugeot have also hit individual EV market share highs.

In contrast, sales of new petrol and diesel cars have “plummeted” from 55 per cent to 45 per cent over the past 12 months, according to the analysis.

Should these trends continue New AutoMotive projected the UK would be on course to meet its zero emission vehicle targets, with sales of new internal combustion engine vehicles potentially running out of road by as soon as 2029.

“It is great to see tens of thousands more drivers discovering the benefits of going electric,” said Ben Nelmes, chief executive of New AutoMotive. “EVs are not only good for the planet, they’re good for your wallet, and they contribute to improving the nation’s energy security.

“A key message from May’s data is that you only find growing car sales where there is a battery. Having abandoned diesel, consumers are now shunning petrol cars too. This month’s data tells a story not only of a growing market, but a maturing market with growing consumer choice as brands respond to the UK’s world-leading ZEV mandate. With a general election campaign underway, these results show a strong swing towards EVs. Whoever forms the next government should commit to maintain the UK’s leadership on cleaner, cheaper transport.”

Commenting on the analysis, Colin Walker, head of transport, Energy and Climate Intelligence Unit (ECIU) said: “The government’s ZEV mandate is having the desired effect with manufacturers competing for customers by discounting their vehicles to hit their targets. While sales of petrol cars plummet, EV sales are rising, and prices are falling – enabling more people to make the switch to cheaper, cleaner driving.”

Walker said the latest sales figures were also positive news for the 80 per cent of drivers who buy their vehicles on the second hand market. “The more new EVs are sold, the faster the used market will then grow, enabling more and more households to escape paying the ‘petrol premium’ that comes from filling a car at the pump, and enjoy the hundreds of pounds of savings that come from charging an EV,” he explained.

Fiona Howarth, chief executive of Octopus Electric Vehicles, said the rise in EV sales comes despite “huge misinformation” being spread about battery electric cars.

“All changes are tough for those who have underinvested in the future – in this case, lagging car manufacturers,” she added. “However, as much as they may fight it, electric cars are great and once drivers switch, they very rarely go back. The tech revolution that has been in your hands through smart phones has now hit the roads.

“Clearly the ZEV mandate is working. It is bringing a huge range of affordable, electric cars to drivers who desperately want them – and giving confidence to investors to continue to roll out the charging network at pace. We’re on the road to mass market EV adoption.”

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