One in four cars sold in November are electric cars
One in four cars sold in the UK last month was electric, according to industry figures, but new registrations were driven by steep discounts.
Electric car sales rose for the 11th consecutive month in November, according to the Society of Motor Manufacturers and Traders (SMMT), as carmakers race to meet tough targets.
SMMT said manufacturers made “huge” discounts worth almost £4bn on electric vehicles (EVs).
It is expected that some companies will miss the government’s electric vehicle (EV) sales target this year and may have to pay fines, but flexibility in the rules means this is unlikely.
The rules say carmakers have to sell a certain amount of EVs but are able to buy sales credits from other firms or ‘borrow’ from their own quota in future years.
SMMT chief executive Mike Hawes said manufacturers were investing “at unprecedented levels” in electric vehicles and “spending billions on attractive propositions”.
But he added: “Such incentives are not sustainable – the industry alone cannot deliver the UK’s world-leading ambitions.”
New electric car registrations bucked the general downward trend for other vehicles.
Although most of the demand for new cars came from fleet sales to businesses, the sector saw a decline in sales overall. Sales to private buyers also declined.
Sales of new petrol cars fell by more than 17%, diesel car sales fell by more than 10%, while hybrids and plug-in hybrids declined by more than 3% and 1% respectively.
The government has promised to meet with carmakers to discuss EV targets. It is stated that Goals “Will not be weak” But this will discuss “flexibility”.
The manufacturers have said They will not be able to meet current goalsWhich states that EV sales should account for 22% of cars sold in 2024, without more customer incentives.
That figure currently stands at 18.7%, and he thinks it could reach 19% by the end of the year.
However, this still leaves them open to paying other manufacturers who have created credits for selling EVs.
While many of those companies are either Chinese or make cars in China – for example, US firm Tesla – other carmakers may also have the credit.
Manufacturers have long argued that it makes no sense to subsidize Chinese companies by buying credits.
Earlier this month, both ford And Stellantiswhich owns Vauxhall, announced job cuts, partly pinned on EV targets.
But both companies have previously raised doubts about their future in the UK due to other factors.
Ford closed its Bridgend factory in 2020, getting rid of 1,644 jobs, with Covid cited as one reason. Vauxhall’s former owner PSA Group suggested in 2019 that Brexit put its Luton factory at risk.
In general, UK-based companies are moving towards electric JLR’s Jaguar is getting a lot of attention over its recent rebrand as an electric-only carmaker,
Other car brands are also outperforming the government’s EV targets.
According to the non-profit New Automotive, Vauxhall’s EVs represent 36% of its sales, Peugeot’s 29%, Renault’s 27%, MG’s 27% and Skoda’s 23%.
A Department for Transport spokesperson said it was “conscious of the global challenges facing the industry”.
He said £2.3 billion was being invested “to support the industry and promote the uptake of electric vehicles”, adding that new cars with internal combustion engines would be phased out by 2030. Labour’s manifesto commitments “have not changed”.
