Electric car discounts are unsustainable, says industry group (SMMT)

  • Creator
    Topic
  • #326583
    joss
    Moderator

      From BBC News https://www.bbc.co.uk/news/articles/c0417v3v21ko

      Industry discounts for electric vehicles are “unsustainable”, a major motoring group has warned, as the number of new cars registered in the UK exceeded two million last year for the first time since the pandemic.

      Nearly 500,000 of the new cars sold were electric, according to figures from the Society of Motor Manufacturers and Traders (SMMT).

      SMMT chief executive, Mike Hawes, welcomed what he called a “reasonably solid result amid tough economic and geopolitical headwinds”.

      But electric car sales were still not increasing fast enough to meet official targets, he said, warning of a growing gap between consumer demand and the government’s ambitions.
      Discounts worth thousands per vehicle were “unsustainable”, he said.

      In total, 2,020,373 new cars were registered in 2025, the third successive year of growth and the highest total since the pandemic.

      However, it was still well short of the 2.3 million sold in 2019.

      Electric cars accounted for 473,340 new registrations last year, giving them a market share of 23.4%.

      That was a significant increase on 2024, but still below the government’s headline target of 28%, under what is known as the Zero Emission Vehicles Mandate (ZEV Mandate).

      The mandate stipulates that carmakers which fail to sell enough electric cars, as a percentage of their overall sales, can face heavy fines.

      However, there are concessions built into the rules which can enable them to avoid penalties, for example by reducing emissions from other vehicles in their fleets, or by buying surplus ’emissions credits’ from manufacturers which exceed their own targets.

      These ‘flexibilities’ were extended in April, following heavy lobbying by some manufacturers, while the fines for failing to comply were reduced.

      Joss
      Current car: BMW X2 sDrive 20i M Sport 5dr Step Auto In metallic Portimão Blue. 04:10:2025
      Previous car:Peugeot 308 GT Premium 1.2 Pure tech Petrol.

    Viewing 7 replies - 1 through 7 (of 7 total)
    • Author
      Replies
    • #326587
      Avatar photoTillyman
      Participant

        Hi Joss – being on the Motability scheme makes the decision as to EV or not too EV so much easier – far less risk involved – the scheme takes almost all of the risk out of it.

        But if I were still working- using the car most days – taking kids to school and weekend clubs and my wife and I both needed cars – which we did – so many more variables to ponder – but the biggest I suspect for most people at the moment is the lack of trust in government and what they will about turn or change next – this is not about politics – but it is about being able to plan ahead and have some belief in what is being promised – ie more on street and motorway charging points at a sensible cost – not suddenly slapping tracking and pay per mile on new or current EVs

        So many people I suspect are very much – let’s just wait and see stage.

        #326591
        joss
        Moderator

          @Tillyman Yes I totally agree with you comment.

          Joss
          Current car: BMW X2 sDrive 20i M Sport 5dr Step Auto In metallic Portimão Blue. 04:10:2025
          Previous car:Peugeot 308 GT Premium 1.2 Pure tech Petrol.

          #326592
          mitch
          Participant

            i am not anti ev, just disapointed in the lack of forward thinking an planning by the powers that be. where are the charging points, relying on commercial operators to fill the void aint going to happen.

            govt and councils need to get together an plan a sensible roll out of on street chargers and even electric charging stations. most councils will have odd bits of land that would make a decent charging hub.

            the initial installation costs would be clawed back reasonabley quickly i am sure some govt support could be given initially through grants/vat/taxes.

            build it and they will come springs to mind, if its easy to charge more will consider an ev.

            #326593
            DJ Kav
            Participant

              I wonder how many of those 500k EVs were Motability or fleet related sales?

              I have ASD and thus have difficulty with social and understanding information, written and verbal. I process information in logical blocks, before I reply. Sometimes I'm right and sometimes I'm wrong.
              I also have a corneal visual condition, which makes me visually impaired without daytime, or daytime bulbs, among other disabilities/conditions.

              #326595
              kezo
              Participant

                I wonder how many of those 500k EVs were Motability or fleet related sales?

                Fleet and business registrations dominated the new car market across the board again in 2025, grabbing 61.4% market share in the UK.

                It doesn’t break down individual powertrains though!

                #326596
                Glos Guy
                Participant

                  I wonder how many of those 500k EVs were Motability or fleet related sales?

                  The vast majority, I should imagine. Of the rest, I should think that the majority are in multi-car households where the EV isn’t the sole car.

                  I know that a few folk on here think that I’m anti EV because I have legitimate concerns about how suitable they would be for us, and I don’t prioritise cheap running costs when choosing a car, but I do feel that for those able to charge at home, and don’t do regular long journeys, they are definitely the smartest choice for Motability customers. If we were to stay on the scheme then I’d definitely look seriously next time, as the choice is better than it is for ICE cars and, as mentioned, all the biggest risks of EV ownership (crippling depreciation, high insurance & repair costs, cost of charger installation etc) are all removed from us.

                  What I find interesting though is that I have a very wide circle of family and friends, all of whom live in properties where they could charge at home. They are all private car owners, rather than Motability or business users. Whenever the subject comes up, not a single one of them is interested in buying an EV. As a result, I’m not at all surprised that EV registrations fell well below the ZEV mandate target last year and, with the government announcing the 3p per mile surcharge (which will obviously increase – people aren’t stupid), I can see the gap between idealism and reality widening as each year goes by. The only question in my mind is how much longer can the government maintain this farce of the 2030/35 cut off dates when consumers aren’t playing ball, the EU is moving back to 2040 and Reform UK and the Conservatives have said that if they are elected they will scrap them!

                  #326809
                  Gazamb
                  Participant

                    Labour have no interest in keeping it at 2030. They had to bring it forward because it was in its manifesto. They are just waiting to justify pushing it into the future. Their policies are designed to slow down demand for EVs.
                    They’re so busy trying to appeal to the Conservative & Reform voters, they have lost the support of everyone. Hence their pathetic approval figures.

                  Viewing 7 replies - 1 through 7 (of 7 total)
                  • You must be logged in to reply to this topic.