Published by Global Banking and Finance Review
Posted on February 5, 2025
(Reuters) -Registrations for new electric vehicles in the UK rose in January but their market share remained short of the 28% mandate for the year, industry data showed on Wednesday.
The Society of Motor Manufacturers and Traders (SMMT) reported that volumes of battery electric vehicles (BEV) rose by 41.6% year-on-year to rise to a 23.7% market share.
"Affordability remains a major barrier to uptake, hence the need for compelling measures to boost demand, and not just from manufacturers," said SMMT Chief Mike Hawes, as the industry called for a halt on EV taxes to encourage more people to buy the low-emission vehicles.
The disparity between demand for EVs and regulated targets have highlighted a need for revision to current incentives, as the latest market outlook sees the gap between BEV share and widening further in 2026, when BEVs are expected to comprise 28.3% against a target of 33%.
Overall, new car registrations dropped for the fourth consecutive month in January to decline 2.5% to 139,345 units, as demand from both fleet and private buyers slowed down in a weak economy.
(Reporting by Anandita Mehrotra and Yamini Kalia in Bengaluru; Editing by Alan Barona and Mrigank Dhaniwala)
