London (Parliament Politics Magazine) – Sales of electric cars in the UK rose in October despite overall demand for vehicles declining as manufacturers raced to satisfy government thresholds.
According to data issued by the Society of Motor Manufacturers and Traders (SMMT), a lobby group, carmakers sold around 29,800 electric cars during the month, up by a quarter compared with the same month last year, That increase came despite overall October sales declining by 6% year on year. Sales of types of diesel decreased by a fifth and petrol cars dropped by 14%.
What role does the zero-emission mandate play in sales?
Under the UK’s zero-emission vehicle (ZEV) mandate, manufacturers must sell an increasing percentage of electric cars each year. Brands have reacted with a slew of new electric models, and UK electric deals reached a record high in September. Electric cars have made up 18.1% of sales so far in 2024, compared with 15.6% at the same point last year.
Why are carmakers pushing for incentives on electric cars?
The industry is lobbying for the UK government to settle the mandate or fund incentives for electric car acquisitions. Carmakers state they are being forced into financially unsustainable discounts. However, critics and climate-focused campaigners say the government should hold firm and that the ZEV mandate is operating as planned. The car-selling website Auto Trader expressed discounts on new electric cars on its platform shot 12.4% in October, a new record. That compared with 9% discounts across all fuel types.
Mike Hawes, the SMMT chief executive, stated the ZEV mandate was considering overall sales. “Fleet renewal across the market remains the quickest way to decarbonise, so diminishing overall uptake is not good news for the economy, for investment, or the environment,” he stated. “EVs already work for many people and businesses, but to shift the entire market at the pace demanded requires significant intervention on incentives, infrastructure, and regulation.”
What challenges are carmakers facing with profit margins?
The car business across the world is labouring with falling profits. Manufacturers are requesting delays on emissions rules in the EU as well as the UK, claiming that they need to keep selling more profitable internal combustion engines in order to afford investments in electric car plants.
In the UK, leaders of BMW, Ford, Jaguar Land Rover, and other big car producers reported to the government expressing the industry would miss its target