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The UK automotive sector has witnessed a significant shift towards electrification, with battery electric vehicles (BEVs) capturing 21.3% of the market share in January 2025, according to the latest data from the Society of Motor Manufacturers and traders (SMMT).
The dramatic 41% year-on-year increase in BEV registrations, rising from 20,900 to 29,900 units, demonstrates the accelerating transition to electric mobility. However, these figures still fall short of the government’s ambitious 28% target for 2025, raising questions about the industry’s ability to meet increasingly stringent zero-emission vehicle mandates.
Overall new car registrations experienced a 2.5% decline to 139,000 units in January, reflecting persistent challenges including subdued consumer confidence, elevated borrowing costs, and increased vehicle prices. This downturn follows an anaemic 2.6% growth in 2024, when the market reached only 1.95 million vehicles.
The competitive landscape is experiencing notable shifts, with Tesla’s January sales declining by 7% to 1,400 units. European manufacturers, including BMW, Volkswagen, Mercedes-Benz, and Peugeot, have intensified their electric vehicle offerings to avoid potential £15,000 fines per non-compliant vehicle under the ZEV mandate. Mini, in particular, has shown remarkable growth, quadrupling its electric vehicle deliveries to over 1,000 units in January.
Chinese manufacturer BYD has emerged as a formidable competitor, surpassing Tesla in the UK market and maintaining its position as the world’s largest producer of electric vehicles. This development signals the growing influence of Chinese automotive manufacturers in the global electric vehicle sector.
The Conservative-introduced ZEV mandate, currently under review by the Labour administration, sets increasingly ambitious targets culminating in an 80% electric vehicle sales requirement by 2030. Industry experts remain divided on the feasibility of these targets, with organisations like New AutoMotive expressing optimism about the UK’s trajectory towards becoming Europe’s leading electric vehicle market.
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