Latest news with #ZEVMandate
Yahoo
3 days ago
- Automotive
- Yahoo
UK car market returns to growth as discounting lifts EV registrations
The UK's new car market returned to growth in May, as registrations rose 1.6% to 150,070 units, according to data from the Society of Motor Manufacturers and Traders (SMMT). It was the best May performance since 2021, but still 18.3% lower than in pre-pandemic 2019 and only the second month of growth this year, reflecting low levels of consumer confidence and a weak UK economy. Fleets and businesses drove the month's growth, up 3.7% and 14.4% respectively and responsible for 62.6% of registrations, while sales to private buyers fell for the second consecutive month, down 2.3%. There were double digit declines in deliveries of both petrol and diesel cars – down 12.5% and 15.5% – while demand for the latest electrified models increased strongly to take a combined 47.3% market share. Uptake of hybrid electric vehicles (HEVs) grew by 6.8% to 20,351 units, while plug-in hybrid electric vehicles (PHEVs) were up more than half (50.8%) to 17,898 units. Registrations of battery electric vehicles (BEVs), meanwhile, rose by 25.8%, accounting for 21.8% of the market as manufacturers continued to support sales with attractive incentives. Despite this, BEV registrations year-to-date have only reached 20.9% car market share – still seven percentage points off the 28% mandated by UK regulations. Moreover, The SMMT noted that significant discounting is 'still ongoing despite new model introductions and increasingly affordable offerings'. The SMMT said that while recent adjustments to the ZEV Mandate were welcome, the current market situation is 'unsustainable for a sector already facing multiple cost pressures'. The SMMT again called for more fiscal incentives to boost BEV sales. It said halving VAT on new EV purchases would put 267,000 additional new EVs – rather than fossil fuel vehicles – on the road in the next three years and drive down CO2 emissions by six million tonnes a year. Removing EVs from the VED Expensive Car Supplement, meanwhile, and equalising VAT paid on public charging to that levied at home would also 'send a signal that now is the time to switch'. Mike Hawes, SMMT Chief Executive, said: 'A return to growth for new car registrations in May is welcome but manufacturer discounting on new products continues to underpin the market, notably for electric vehicles. This cannot be sustained indefinitely as it undermines the ability of companies to invest in new product development – investments which are integral to the decarbonisation of all road transport. Next week's Spending Review is the opportunity for government to double down on its commitments to Net Zero by driving demand through fiscal measures that boost the market and shore up our competitiveness.' "UK car market returns to growth as discounting lifts EV registrations " was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
The Independent
4 days ago
- Automotive
- The Independent
UK electric car sales jumped by over 25 per cent in May
Latest car registration figures from SMMT (Society of Motor Manufacturers and Traders) show the popularity of electric cars is rising fast but is still falling short of government targets. Nearly 33,000 new EVs hit the roads in May, up 25.8 per cent on 2024 figures. That means electric cars account for 20.9 per cent of all new car sales so far in 2025, some way off the government's ZEV Mandate target of 28 per cent. Car makers that fail to hit the 28 per cent figure face fines or will have to find ways to use credits that can include buying them from other car makers. Plug-in hybrid cars are also growing in popularity with registrations up 50.8 per cent on last May with a total of 17,898 PHEVs sold. And although petrol models still account for the vast majority of new car sales, taking 49 per cent of all car sales so far in 2025, the figure for May shows a drop of 12.5 per cent year-on-year. Overall, the car market returned to growth in May, up by 1.6 per cent and the best May for car sales since 2021. However, SMMT says that the fleet and business sector was responsible for the bulk of sales with sales to private buyers down for the second consecutive month. Although EV sales are buoyant, SMMT says that much of that is down to discounting with SMMT CEO Mike Hawes calling for government incentives to boost demand in the upcoming spending review. 'A return to growth for new car registrations in May is welcome but manufacturer discounting on new products continues to underpin the market, notably for electric vehicles. This cannot be sustained indefinitely as it undermines the ability of companies to invest in new product development – investments which are integral to the decarbonisation of all road transport. 'Next week's spending review is the opportunity for government to double down on its commitments to net zero by driving demand through fiscal measures that boost the market and shore up our competitiveness.' SMMT is calling on the government to halve VAT on new electric vehicle purchases saying it could lead to an additional 267,000 new EVs being used instead of fossil fuel vehicles over the next three years, potentially reducing CO2 emissions by six million tonnes annually. SMMT is also saying that EVs should be removed from the Vehicle Excise Duty (VED) Expensive Car Supplement, while VAT for public and home charging should be equalised at 5 per cent to encourage more consumers to consider switching to electric vehicles. Commenting on the latest registration figures, Fiona Howarth, founder of Octopus Electric Vehicles said 'we've seen yet another strong month for EVs – proving that people want to drive electric. There has been a clear shift in the market, with car manufacturers new and old bringing out new, cheaper models every month, improving driver choice and helping to make the switch to cleaner, low-cost driving.'
Auto Express
22-05-2025
- Automotive
- Auto Express
Labour hints at major luxury car tax U-turn to boost EV sales
Is the controversial luxury car tax applied to new electric cars costing over £40,000 about to be tweaked or even scrapped? A letter from Labour transport minister Lilian Greenwood to a local MP, seen by Auto Express, says the government will consider raising the threshold of the expensive car VED surcharge 'for zero emissions vehicles only, at a future fiscal event'. The aim would be to 'make it easier to buy electric cars'. Greenwood is Labour's minister for the future of roads, and was responding to enquiries made by Ben Maguire, the MP for Launceston, who was in turn representing concerns raised by his constituent - the general manager of a local car dealership - regarding the negative impacts of the ZEV Mandate. Advertisement - Article continues below In her reply, Greenwood also stated that the government response to its recent ZEV Mandate consultation 'has provided stability and certainty to British vehicle manufacturers by restoring the 2030 (internal combustion) phase out deadline'. She then went on to highlight possible changes to the VED expensive cars supplement that has been imposed on EVs costing more than £40,000 since April. The move to introduce the supplement - often referred to as the 'luxury car tax' - has been widely condemned as a major disincentive to EV purchases. Skip advert Advertisement - Article continues below The ZEV Mandate changes have introduced what the government calls 'flexibilities' around how manufacturers must meet sales targets for EVs in the run-up to 2030. They also granted a heavily-trailed stay of execution for plug-in hybrid models, which use electric and internal combustion powertrains, up to 2035 but industry insiders scoff at the notion that stability has been achieved. Discussions Auto Express has had with highly placed car retail group executives suggest they see a number of threats posed by current government policy. These include the potential rationing of petrol and diesel vehicles by dealers as happened in 2024, in order to meet ZEV Mandate EV sales percentage targets. They also point to restricted consumer choice with drivers being coerced into vehicles they don't really want, and the possibility of cutbacks in UK car production costing jobs. Greenwood's revelation that a VED luxury car tax break for EVs could be on the cards may prove to further destabilise the EV market if customers choose to hold off on purchases as a result. The next 'fiscal event' in Labour government parlance will be the autumn budget - still many months away. Now the cat is out of the bag, the question is whether Labour will be forced to move sooner with a road tax cut, in order to provide clarity to car buyers considering a new EV purchase in those interim months. Our Car Tax Checker tool lets you check your tax status and renewal date in seconds. Check your VED car tax now... Find a car with the experts Flawed hybrid car efficiency data to stifle UK EV sales and propagate pollution Flawed hybrid car efficiency data to stifle UK EV sales and propagate pollution Half a million extra PHEVs could reach UK roads by 2030 in place of cleaner EVs due to changes surrounding the ZEV Mandate New Ford Fiesta: latest details on supermini's potential return New Ford Fiesta: latest details on supermini's potential return The Ford Fiesta could be coming back as an electric car, and here's everything we know so far Kia is returning to its 'Keeping It Affordable' roots Kia is returning to its 'Keeping It Affordable' roots Mike Rutherford thinks new cars are simply too expensive, but some manufacturers are starting to do something about it
Auto Express
19-05-2025
- Automotive
- Auto Express
Flawed hybrid car efficiency data to stifle UK EV sales and propagate pollution
The government's decision to permit the sale of hybrid-powered vehicles post-2030 has the potential to increase carbon emissions and stifle the sales of EVs, according to a leading transport sustainability group. Following the review by Labour into the ZEV Mandate – a set of rules which not only dictates the phase-out date for internal-combustion engined (ICE) vehicles, but also how many EVs must be sold per year up to that point – full-hybrid and plug-in hybrid cars will now be allowed to be sold from new between 2030 and 2035. Advertisement - Article continues below However, The European Federation for Transport and Environment (T&E), says that the decision to consider plug-in hybrids as low-emissions and thus suitable to be sold after 2030, was based on what it describes as 'flawed' data that 'dramatically understate[s] the true emissions of PHEVs'. Recently, it was highlighted that emissions data for plug-in hybrid cars on the WLTP test cycle were largely unrealistic and not representative of what most buyers achieved on the road. T&E says that, on average, the real-world emissions of a plug-in hybrid car are typically three-and-a-half times higher than what the official figures suggest. Such a disparity is much greater than that for petrol or diesel cars. This has largely been put down to the fact that PHEVs are tested with a charged battery and because tests take place over a short distance, the effectiveness of the battery and accompanying electric motor is overstated. A stricter test cycle has already been introduced, with a new, more representative set of regulations due to be introduced in 2027 that will better reflect real world driving. Skip advert Advertisement - Article continues below Despite this, the government has stated that emissions targets for manufacturers will continue to use the old figures and test cycle. This, T&E fears, means that drivers will continue to be 'misled by the 'low emission' image of PHEVs portrayed by carmakers' and that the UK may struggle to hit its lofty climate targets as a result. In fact, the European transport sustainability group believes this mixed messaging surrounding PHEVs could see as many as 500,000 additional new cars using the tech hitting the road by 2030, in turn jeopardising the sales of cleaner, fully-electric cars. T&E has called on the government to bear in mind the new updated plug-in hybrid emissions figures and regulations before pressing ahead with its ZEV mandate changes to avoid 'duping' the public. Such a sentiment is backed by Professor of Business and Sustainability at the University of Cardiff, Peter Wells, who told Auto Express that T&E's analysis was 'entirely correct, both in terms of the real-world performance of PHEVs, and the actual cost to consumers. It is a flawed policy.' Wells continued, saying: 'We too easily forget that the point of all of this is to slow down the rate of climate change. Once again the government has allowed itself to be distracted by short-term economic expediency.' Auto Express has approached the UK Department for Transport for comment, but we have yet to receive a response. Take a look at the best electric car deals on the market right now... Find a car with the experts Car Deal of the Day: Sacre bleu! The Renault 5 keeps getting cheaper Car Deal of the Day: Sacre bleu! The Renault 5 keeps getting cheaper The modern-day Super Cinq comes with a super price. It's our Deal of the Day for 14 May Want a new small car? You probably can't afford one and car bosses blame the EU Want a new small car? You probably can't afford one and car bosses blame the EU Renault and Stellantis bosses demand changes to the emissions rules driving up new car prices Best electric cars 2025: the top 10 best EVs you can buy Best electric cars 2025: the top 10 best EVs you can buy Thinking about making the switch to an electric vehicle? Here are the EVs that should be on your shortlist, and why… Best cars & vans 14 May 2025
Yahoo
26-04-2025
- Automotive
- Yahoo
UK vehicle production up in March
UK car and commercial vehicle production rose by 17.1% to 79,018 units in March, according to the latest figures published by the Society of Motor Manufacturers and Traders (SMMT). Output of cars, vans, trucks, taxis, buses and coaches increased in comparison with a weak March last year, when the earlier Easter break reduced working days and significant model changeovers impacted output levels. Car manufacturing in the month of March grew for the first time in 12 months, driven by robust export demand that increased by 30.6%, with almost three quarters (73.3%) of all output shipped overseas. However, production for the UK market fell by 6.1%. Electrified vehicle production also rose, by 38.5% – more than twice the rate of total production – to 31,661 units, to account for almost half of all UK car output (45.0%). The SMMT noted that the proposed revisions to the ZEV Mandate have been welcomed by manufacturers, evidence that government recognises some of the challenges facing the industry, not least the absence of robust consumer demand for EVs which is undermining competitiveness. In addition, given the UK is a significant producer of zero emission commercial vehicles, particularly for the domestic market, extensions to the grants for plug-in vans and trucks are critical if this vital market is going to grow in accordance with mandate ambitions. The EU continued to be the largest destination for UK car exports, accounting for 57.2% of all shipments. Ahead of the introduction of new tariffs, the US remained the second largest export market, comprising 15.0% of exports, followed by China (8.5%), Turkey (2.7%) and Japan (2.6%). Exports to all top five markets rose for the month, with the EU up by 28.9%, the US 36.1%, China 86.0%, Turkey 272.1% and Japan 91.8%. CV production also rose, up by 8.2% to 8,700 units, in comparison with a weak March 2024 when volumes were constrained by both Easter timing, and a softening of output following 2023's post-Covid pent-up demand. As in previous months, CV growth was driven by domestic demand, which rose by 77.9% to 5,218 units. Conversely, CV exports fell by 31.8% to comprise just 40.0% of output. The EU remains the sector's largest market by far, accounting for 94.2% of exports in the month. Quarterly output down As a result, overall UK car production for Q1 2025 was down slightly, by 3.2%, but with exports up 4.4%, while CV output was down a more significant 27.1%, and exports down by 50.3%. Given the figures reflect the level of demand ahead of the announcements of new US tariffs, manufacturers face considerable uncertainty heading into quarter two as US demand likely weakens with knock on effects on other markets and the supply chains. The SMMT said that 'trade discussions must continue at pace to reach a deal that supports jobs, demand and growth on both sides of the Atlantic'. The SMMT also warned that increased protectionism and retaliatory tariffs being levied in key markets mean a rapid response from government is needed, given the immediate challenges facing the industry's exports. Mike Hawes, SMMT Chief Executive, said: 'A March uplift to manufacturing is overdue good news, although the performance was boosted by a comparatively weaker month last year, when holiday timings and product changeovers combined to reduce output. With the last quarter showing demand for British-built cars rising overseas, navigating the new era of trade uncertainty is now the major challenge. Government has rightly recognised automotive manufacturing's critical role in Britain's export economy and must now show urgency and creativity to deliver a deal that supports our competitiveness, spurs domestic demand for the latest cleanest vehicles, and helps factory lines flourish.' "UK vehicle production up in March" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
