Analysis of the UK New-Car Market Performance in 2024 and Outlook for 2025

The UK new-car market faced a challenging year in 2024, with fluctuating registrations and a focus on zero-emission deliveries. The latest data from the SMMT shows a slight decline in December, marking the third consecutive month of decrease. Despite this, the full-year total ended up by 2.6%, with over 1.95 million units registered.

One of the highlights of the year was the boom for UK battery-electric vehicles (BEVs). In December, BEVs achieved a 56.8% increase in registrations, reaching a 31% market share. This trend continued throughout the year, with BEVs ending up as the second-most-popular powertrain in the UK, surpassing Germany in total registrations.

However, the success of BEVs in 2024 may have been influenced by certain strategies, such as manufacturer discounting and accelerated deliveries to meet targets. The introduction of the ZEV mandate also played a significant role in shaping the market dynamics, with fines for non-compliance looming over carmakers.

The consultation launched by the UK Government in December aims to review the effectiveness of the ZEV mandate and consider potential amendments to the ban on new petrol and diesel engines. Stakeholders have until February 18 to provide feedback on the proposed changes, which could impact the automotive industry’s future plans and strategies.

Overall, the UK new-car market in 2024 showcased a shift towards cleaner powertrains, with BEVs leading the charge. As the industry navigates through regulatory changes and consumer preferences, carmakers will need to adapt their offerings to meet evolving demands and sustainability goals. The coming year is poised to bring more challenges and opportunities for the automotive sector, as it strives to achieve a decarbonized and sustainable future.