‘The ZEV mandate is working’: Electric vehicles top 17 per cent market share in May

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

The latest sales data published by the Society of Motor Manufacturers and Traders (SMMT) show pure EVs claimed a 17.6 per cent share of the car market in May, 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 year-on-year.

Consumer EV sales, however, dropped two per cent in May, falling 98 registrations short on last year’s figures for the month, according to the SMMT.

The trade body described the growth in the overall market share for EVs last month as “encouraging”, but pointed out that demand remained below the trajectory needed for manufacturers to meet targets set under the Zero Emission Vehicle (ZEV) Mandate, which requires that 22 per cent of new vehicles sold this year are zero emission. Manufacturers that miss the target are at risk of fines.

As such, the SMMT reiterated calls for the next government to introduce new consumer incentives or tax breaks to help ensure the sector can comply with the ZEV Mandate this year.

Specifically, the group 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 prioritise 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 year-on-year 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 estimates produced by EV non-profit New AutoMotive this week, which confirmed 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 for the same period last year.

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

Last month’s growth comes despite a continued fall in sales for market leader Tesla, with BMW close to overtaking the American EV giant, while the likes of Nissan Vauxhall, and Peugeot all set new records for their EV market shares.

In contrast, new petrol and diesel cars’ share of the market has “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 reachiung negligible level as early 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 at the 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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