UK new car sales rise in 2024, industry data shows

(Reuters) -New car registrations in the UK rose in 2024, industry data showed on Monday, ending a challenging year for the country's auto sector amid a major electric vehicle transition.

The Society of Motor Manufacturers and Traders (SMMT) said new car registrations grew about 2.6% year-on-year to 1.95 million units in 2024, while the December numbers fell 0.2% to 140,786 units.

Even as new battery electric vehicle (BEV) registrations reached their highest monthly levels since December 2022 and made up 19.6% of the market in 2024, the industry still missed the mandated yearly target.

UK rules require EVs to make up 22% of an automaker's new car sales in 2024, a target that has faced huge backlash from global automakers. The EV target rises to 80% in 2030.

In November, the new Labour government said it will reconsider its strict EV sales targets after warning of factory closures and job losses amid declining demand from consumers.

The auto industry has welcomed the review.

SMMT's chief executive Mike Hawes said, "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.” 

(Reporting by Yamini Kalia in Bengaluru; Editing by Janane Venkatraman and Mrigank Dhaniwala)