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Electric car discounts are 'unsustainable' as sales climb, car group warns

Electric car discounts are 'unsustainable' as sales climb, car group warns

Summary

The UK is seeing a rise in electric car sales, with nearly half a million sold last year. A major motoring group warns that government discounts for these cars are "unsustainable" and may not meet future sales targets. The group suggests reviewing the rules requiring more electric car sales as costs for manufacturers rise.

Key Facts

  • Over 2 million new cars were registered in the UK last year, with nearly 500,000 being electric vehicles.
  • Electric cars had a market share of 23.4%, up from 2024 but still below the government target of 28%.
  • The Zero Emission Vehicles Mandate requires carmakers to meet certain electric vehicle sales targets or face fines.
  • Some carmakers can avoid fines by reducing emissions elsewhere or buying credits from others who exceed targets.
  • Manufacturers are giving large discounts on electric cars, valued at over £5 billion last year, which is seen as unsustainable.
  • The motoring group called for a review of the ZEV Mandate to consider rising energy and material costs.
  • The UK government supports electric car sales through grants and funding for charging infrastructure.

Source Information