UK new car sales up for second year in a row as business buyers swap to electric vehicles, research shows

A total of 1,952,778 new cars reached the road in 2024, a rise of 2.6% on the previous year.

Only one in ten private car buyers chose to purchase a pure electric vehicle, despite mandated Government targets for new zero emission vehicles imposed on manufacturers which the SMMT describe as "unsustainable". 

However around 64,000 more Battery Electric Vehicles(BEVs) were registered by businesses and fleets than a year ago.

As a result, BEVs made up 19.6% of the market (381,970 units), up by more than a fifth from last year, but short of the 22% demanded by the mandate.

"A record year for EV registrations underscores vehicle manufacturers’ unswerving commitment to a decarbonised new car market, with more choice, better range and increased affordability than ever before," said Mike Hawes, SMMT Chief Executive. 

"This has come at huge cost, however, with the billions invested in new models being supplemented by generous incentives which are unsustainable. We need rapid results from the regulatory review and urgent substantive support for consumers – else automotive investments will be at risk and the jobs, economic growth and net zero ambitions we all share in jeopardy."

Across the total market, petrol and diesel car registrations fell by -4.4% and -13.6% respectively as more buyers swapped either to BEVs, or to lower emission hybrid electric vehicles (up 9.6%) and plug-in hybrids (up 18.3%).

In the final month of the year, the market remained flat at 140,786 new cars, a marginal -0.2% decline, capping off a challenging year for the sector as manufacturers strove to create demand for electric vehicles in a bid to meet the new mandated sales targets. 

Over the full year, growth was delivered entirely by fleets, up 11.8% to reach 1,163,855 units, accounting for a record six in 10 (59.6%) new car registrations. Conversely, registrations by private buyers fell by -8.7% to 746,276 units – less than in 2020 when social distancing restrictions during the pandemic shut down the market for three months.1 The far smaller business sector saw uptake fall by -3.1% to 42,647 units.

Petrol remained the most popular powertrain among private buyers, taking up 61.0% of demand, with hybrid electric vehicles (HEVs) in second place at 16.0%.

“An uptick in EV growth in December reflects the significant discounting by manufacturers to reach EV vehicle quotas," said Jon Lawes, Managing Director at Novuna Vehicle Solutions, one of the UK’s largest fleet operators.

"However, it remains clear that such incentives are unsustainable with the ZEV mandate unfit for purpose, and the challenges will only get worse with rising thresholds this year. 

“There’s no doubt that the industry widely maintains support for the transition, but the government must act now to relieve pressure on manufacturers that are already stretched to hit overly ambitious targets by providing bold fiscal support over and beyond measures just for company car drivers. Any misalignments with the 2030 ICE phase-out timeline must also be ironed out urgently with a swift conclusion to the consultation – the status quo threatens to stifle the transition to zero emissions vehicles in the year ahead.”