ZEV Mandate target still out of reach for car makers despite record EV sales in March
March figures show leap for new EV registrations as buyers race to beat April’s VED rises, but are still not enough for manufacturers to meet targets
Latest UK registration figures show electric car sales underwent a mini boom in March, with registrations up 43.2 per cent and a record 69,313 new vehicles hitting the road.
Nevertheless, the industry is warning that the numbers fall far short of the 2025 targets set by the Zero Emission Vehicle (ZEV) Mandate, as the data shows a market share for EVs at just 19.4 per cent for the month. That means year-to-date EV sales are running at 20.7 per cent; to avoid financial sanctions under the ZEV Mandate, manufacturers must end the year with EV sales taking a significantly higher 28 per cent market share.
That’s currently looking like a tough ask, with part of the March mini boom in EV sales being attributed to the fact that April registrations will fall foul of stiff increases in VED/road tax, with many electric models becoming liable for the expensive car supplement as exemptions ended in March. That factor is thought to have driven many buyers to beat the tax rises by registering a new model last month, and the industry fears the strong March figures will not be repeated in April, as the VED increase bites.
According to trade body the Society of Motor Manufacturers and Traders: “While EV market share improved significantly, at 19.4% it remains more than eight percentage points behind targets set by the ZEV Mandate. Furthermore, given the VED Expensive Car Supplement can now apply to eligible new EVs from 1 April – potentially raising ownership costs for most EV drivers by more than £2,000 over the next six years – the March EV performance will have been boosted by shrewd buyers seeking to get ahead of the taxation increase.”
It claims the numbers underscore the challenge facing makers. Many are still spending highly on incentives, the trade body says, pointing to estimates that supporting EV sales cost its members a huge £4.5billion last year.
Overall, car registrations rose 12.4 per cent in March to 357,103, with the SMMT noting a slow return of retail buyers to a market that’s been mostly driven by fleet and business sales in recent months. Fleet registrations were up 11.5 per cent, while private registrations rose 14.5 per cent.
SMMT chief executive Mike Hawes declared the figures “a welcome return to growth”, but said the industry needed sustained growth and “not a short-term bubble driven by unsustainable manufacturer discounting and drivers rushing to beat a tax hike”.
Hawes called for substantive Government support for consumers, saying the current regulatory regime is undeliverable, and demanded a rapid response to the recent consultation on changes to the ZEV Mandate.
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