Manufacturing Biz #6 - Magazine - Page 23
market – the only time the ZEV mandate
target of 28% was exceeded in 2025.
As a result, last year’s market rose by
3.5%, with growth across all buyer types.
Demand from private buyers recovered
slightly from 2024 – when uptake fell
below levels last seen during 2020 – with
a 4.5% increase to 779,587 units, but still
only comprising 38.6% of registrations.
Fleet and business registrations also rose,
up 2.6% to 1,194,545 and 8.8% to 46,388
respectively.
Electrified vehicles narrowly missed
becoming the majority of the market
despite a surge during the last quarter.
Hybrid electric vehicle (HEV) volumes
rose by 7.2% to achieve a 13.9% market
share, while plug-in hybrids were the
fastest growing powertrain, with volumes
increasing 34.7% to take 11.1% of
registrations.
Meanwhile, almost half a million (473,348)
new BEVs were registered during 2025 –
more than in the whole of 2021 and 2022
combined. This huge volume, which is
likely to place the UK as the second biggest
EV market in Europe by volume, saw BEV
market share rise to reach 23.4% – a strong
uplift, but with a mandate target of 28%
the gap between demand and ambition is
increasing rather than diminishing.
Massive manufacturer investment now
provides a choice of more than 160 BEV
models – up from just over 130 at the
start of 2025 – with at least 60 more due
in 2026.
However, EV uptake has risen by only
23.9%. The long-awaited return of a grant
for EV purchase has helped, although only
around a quarter of models are currently
eligible for the incentive at any level.
It is manufacturers, therefore, that
continue to shoulder the burden of driving
up demand, subsidising their sale by more
than £5 billion in 2025, equivalent to a
massive £11,000 per BEV registered.
Such subsidies are clearly unsustainable.
Furthermore, the announcement of a new
‘eVED’ tax on EVs purchased from 2028
sends a confusing message to consumers,
undermining rather than encouraging
market confidence.
While average new car CO2 has fallen
by -10.1% from 2024 to 91.8 g/km,
which will assist some manufacturers
with mandate compliance, the UK’s zero
emission sales target will next year require
BEVs comprise one in three new car
registrations.
The UK already has the most ambitious
transition trajectory of any major market
and, with the EU’s proposal to revise
its end of sale date from 2035, divergence
between the UK and the much larger market
on its own doorstep is broadening.
Action is needed from government
to ensure the British market remains
attractive for investment, and one which
supports consumers, the industry and the
economy. The forthcoming review of the
ZEV Mandate will be a crucial opportunity
to ensure the transition supports the
UK’s international competitiveness
and prosperity, as well as its shared
decarbonisation goals.
“The announcement
of a new ‘eVED’ tax on
EVs purchased from
2028 sends a confusing
message to consumers,
undermining rather
than encouraging
market confidence.”
bIZ4BIZ.ORG
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