Electric vehicle registrations jumped 41% in January, with 29,634 new EVs hitting UK roads — even as overall new car sales dropped 2.5%.
The Society of Motor Manufacturers and Traders (SMMT) reports EVs made up 21.3% of new car sales last month, falling short of the government’s Zero Emission Vehicle mandate for 2024 and well below the 28% target set for year-end.
SMMT is pressing for increased government support, particularly changes to planned tax policies that could slow EV adoption.
“This gap between demand and ambition is why the review of the Vehicle Emissions Trading Scheme and its flexibilities is essential and must deliver meaningful changes urgently,” SMMT stated.
The organization specifically challenged upcoming rules that will apply a £410 annual Expensive Car Supplement to EVs priced over £40,000. This threshold hasn’t changed since 2008, despite significant increases in vehicle prices.
“January’s figures show EV demand is growing – but not fast enough to deliver on current ambitions,” said Mike Hawes, SMMT chief executive. “Affordability remains a major barrier to uptake, hence the need for compelling measures to boost demand, and not just from manufacturers.”
Hawes emphasized that adding taxes on EVs works against climate goals: “Rather than penalising EV buyers, we should be taking every step to encourage more drivers to make the switch.”
Reports suggest the government may introduce new subsidies supporting low-interest loans for private EV buyers.
Cox Automotive’s insight director Philip Nothard reinforced SMMT’s position on government support. “While EV adoption maintains steady growth, private buyers remain cautious,” he said. Recent data from Cox Automotive and Regit shows 86% of drivers believe current EV incentives are insufficient.
“With ambitious EV targets ahead, there is concern that upcoming tax changes could slow progress at a critical time,” Nothard added. “A balanced approach to taxation and incentives will maintain momentum and ensure the UK remains on track for a successful transition to electrified mobility.”
