Electric cars claimed more than half of all new vehicle registrations in November, marking the second straight month they’ve dominated the market. But industry leaders warn that proposed tax changes could derail this momentum.
The Society of Motor Manufacturers and Traders reported that electric vehicles captured 51.4% of new car registrations last month.
The numbers represent a 3.6% jump compared to November 2023, even as the broader car market declined 1.6%. However, the SMMT cautioned that this was the smallest growth rate in nearly two years.
39,965 electric cars were registered in November alone, bringing their market share to 26.4%. That’s still below the 28% target outlined in the ZEV mandate.
For the full year through November, 426,209 new electric vehicles hit UK roads – a 22.7% market share.
Tax Plans Spark Industry Concern
The pay-per-mile taxation system announced in the Budget has manufacturers worried. The SMMT says these plans could “quash demand right when it’s needed to rise steeply.”
Mike Hawes, SMMT chief executive, highlighted the timing issue.
“Even in a fragile market, zero emission vehicle uptake continues to rise, which is exactly what we need,” Hawes said. “But the weakest growth for almost two years – ahead of government announcing a new tax on EVs – should be seen as a wake-up call that sustained increase in demand for EVs cannot be taken for granted.”
He stressed that policy should encourage the transition, not penalize early adopters.
“We should be taking every opportunity to encourage drivers to make the switch, not punishing them for doing so, else the ambitions of government and industry will be thwarted.”
The trade body acknowledged some positive measures. Extensions to the Electric Car Grant and raising the Expensive Car Supplement threshold provide helpful support. But they argue the pay-per-mile system threatens to “endanger the UK’s net zero transition.”
Charging Infrastructure Leaders Weigh In
Melanie Lane, CEO of charging specialist Pod, called for a policy reversal on EV taxation.
“A growth slowdown in November proves that now is the wrong time to introduce taxes on EV drivers,” Lane said. “Further cost pressures for manufacturers and fleet managers will keep the sector from achieving a 28% market share target set by the ZEV mandate.”
She pointed to the fundamental economics favoring electric vehicles.
“The total cost of owning an EV is lower than ICE and the intention from drivers is there – but the Government needs to give consumers and the market more confidence in order to sustain demand, yield returns on its own Electric Car Grant investment and generate growth for the UK over the long term.”
The tension between achieving climate goals and managing tax revenue presents a critical challenge. Electric vehicles currently benefit from lower running costs, but that advantage could erode under the proposed mileage-based system.
Industry data suggests consumer interest remains strong despite the slower growth rate. The question is whether policy changes will support or undermine the transition as the UK works toward its net zero commitments.
