Electric Car Sales Hit 25% of New Car Market in November

Record-Breaking EV Sales Amid a Contracting Market

The UK’s automotive industry reached an important achievement in car sales last month. Electric vehicles (EVs) made up 25.1% of all new car registrations in November 2024. The Society of Motor Manufacturers and Traders (SMMT) reported that this marks the 11th month in a row of growth in EV sales. This is quite impressive, especially since the new car market has been facing a decline.

EV sales increased by 58.4% from last year, with 38,581 electric models registered. This shows more people are choosing zero emission vehicles. In contrast, the number of petrol cars registered dropped by 17.7%. Additionally, diesel cars also went down by 10.1%. This shows a big change in the UK car industry.

November 2024 Car Sales Overview

Source: SMMT

The SMMT reported that even with some growth, new car sales actually went down by 1.9%. In November, there were 153,610 new vehicles registered. There is still a worry about lower demand from private buyers. This group dropped by 3.3%, making up only 38.1% of the market. Fleet sales also showed a small decrease of 1.1%.

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Heavy Discounts Drive EV Growth

The rise in EV sales was mainly due to major discounts from manufacturers. The SMMT reported that around £4 billion in discounts have been given in 2024 to reach the sales targets set by the ZEV mandate.

The ZEV mandate from the previous government says that 22% of all new car registrations in 2024 must be electric. This rule has helped increase sales. However, people are still worried about how long these discounts can last.

Mike Hawes, SMMT Chief Executive, cautioned:

The Role of Private Buyers and Fleet Sales

Fleet sales make up 59.9% of the market. However, private buyers are still slow to adopt electric cars. This is due to several reasons. High upfront costs are one reason. Another reason is the challenge of accessing EV charging. Also, there are not enough incentives to encourage individuals to buy electric cars.

Source:smmt

Industry experts, like Ginny Buckley from Electrifying.com, say we need better government support. This support is important to help first-time buyers get electric vehicles (EVs).

Challenges Facing the EV Market

1. Unsustainable Discounts

Manufacturers are giving huge discounts to meet their sales targets. However, this way of doing business cannot last for long. Industry leaders, like Andy Palmer, encourage a more practical approach. They believe it’s important to balance demand with profit.

2. Charging Infrastructure Deployment

The UK has more than 71,000 public chargers. However, the growth of these chargers is slow. We need to expand quickly to keep up with the number of EVs on the road.

3. ZEV Mandate Targets for 2025

To reach the 2025 ZEV mandate goal of 28%, we need a 53% increase in EV registrations. This means we will need 90,000 more BEVs. Achieving this will take significant intervention, like support from regulations and incentives for consumers.

Good News for the UK Automotive Industry

The UK is still the second-largest EV market in Europe, even with some challenges. It is getting closer to Germany. Right now, there are more than 130 new electric models available. The industry is still showing strong creative ideas and investment.

Key Growth Indicators:

• The EV market share hit 25.1% in November. This is the highest it has been since December 2022.
• Investment in zero emission vehicles went up more than 42% compared to last year.
• Experts expect that EV sales will take over the UK new car market in the next decade.

Colin Walker, who is with the Climate Intelligence Unit, said:

The Future of the UK Car Market

The move to zero emission vehicles is very important for reaching the UK’s climate goals. Experts think a big change will be needed to keep the growth going.

• The government is giving rewards to private buyers.
• They are speeding up the setup of charging infrastructure.
• There is support for recycling electric vehicles (EV) to help with long-term sustainability.

The recent events from the SMMT showed how important manufacturers are for new ideas. However, to keep things moving forward, the UK government, policymakers, and the industry must work together.

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How to Save Money on EV Car Insurance with Free Price Compare

Many drivers are looking for ways to save money on electric vehicle (EV) insurance. This comes as more people are buying EVs, and there is a focus on making road transport cleaner. It’s important to find affordable insurance plans that meet the needs of both new and seasoned EV users. Free Price Compare can help you find good deals while making sure your electric vehicle is well protected.

1. Compare Insurance Providers for EVs

Insurance premiums for new BEVs can change a lot depending on the provider. Things like the vehicle’s value, battery replacement costs, and repair costs can affect the quotes you receive. By using Free Price Compare, you can find several insurers that offer special coverage for EVs. This way, you can save both time and money.

2. Look for EV-Specific Discounts

Some insurance companies give discounts for zero emission vehicles. This is because these cars help lower greenhouse gas emissions and support the goals of the climate change committee. Free Price Compare can help you find policies that have these EV-friendly incentives, such as:

• Lower costs for cars that have safety features like regenerative braking.
• Unique coverage for EV chargers set up at home.
• Discounts for low miles driven, which often happens for EV owners in the city.

3. Leverage Government Incentives

The sale of new petrol cars will stop by 2030. This change will encourage more drivers to choose electric vehicles (EVs). To help with this switch, the government is giving tax benefits. This includes a reduction in Vehicle Excise Duty (VED) for cars that do not produce emissions.

Free Price Compare’s tools help you see these savings. This makes it easier to understand the business case for picking an EV. When you mix these incentives with the best insurance options, you can save more money over time.

4. Choose the Right Level of Cover

EV drivers often pay too much for insurance they don’t need. It doesn’t matter if you have a new model or a commercial vehicle. Free Price Compare can help you choose the best policy.

• Third-Party Cover: Meets the minimum legal requirements.
• Third-Party, Fire, and Theft: Gives extra protection against fire and theft.
• Comprehensive Cover: Provides complete protection, including battery, charging cables, and accidents.

By looking at new registrations and the terms from different insurers, EV owners can find a good mix of coverage and cost.

5. Save with Multi-Car and Fleet Policies

For families or businesses that have several electric vehicles (EVs), Free Price Compare offers choices for multi-car insurance and fleet policies. This is perfect for businesses that want to grow and be sustainable. It helps them insure their vehicles at good rates.

6. Explore Pay-Per-Mile Options

Low-mileage electric vehicle (EV) owners can save money with pay-as-you-drive plans. These vehicles are usually used for short trips in the city. This special kind of coverage can provide big savings compared to regular insurance rates.

What challenges do electric car manufacturers face in boosting sales?

Electric car manufacturers face challenges like high initial costs, limited charging infrastructure, range anxiety, and consumer awareness. Overcoming these obstacles through innovation, government incentives, and infrastructure development is crucial for electric car sales to continue growing in the market.

FAQs About UK EV Sales and Market Trends