Driving the road to zero emissions

Nearly 315,000 new people committed to Battery Electric Vehicles in 2023

In 2023, the UK witnessed a surge in new car registrations, totalling 1.903 million, a notable 17.9% increase attributed largely to heightened fleet investments. Despite the record-high volume of battery electric vehicles (BEVs), their market share slightly dropped to 16.5%.

The Society of Motor Manufacturers and Traders (SMMT) reported that the UK's new car market experienced its strongest year post-pandemic, with a robust December contributing to 17 consecutive months of growth. Investments in low and zero emission vehicles led to a -2.2% reduction in average new car carbon dioxide emissions, resting at 108.9 g/km.

Hybrid electric vehicles saw a 27.1% increase

Hybrid electric vehicles (HEVs) saw a 27.1% increase, securing a 12.6% market share, while plug-in hybrids (PHEVs) accounted for 7.4% of the market with a 39.3% surge in registrations.

BEV uptake soared to a record volume of 314,687 new registrations, marking a substantial increase of nearly 50,000 units. However, there was a -34.2% downturn in BEV volumes in December 2022 due to exceptional circumstances when numerous orders were fulfilled.

In 2023, BEVs constituted one-sixth of new car registrations, primarily favoured by business and fleet buyers capitalising on tax incentives. In contrast, only one-eleventh of private buyers opted for BEVs.

Large car manufacturers attempt to delay electric car rules and the ZEV mandate

Numerous leading car manufacturers, including Toyota, Jaguar Land Rover (JLR), and Nissan, lobbied the UK government to either weaken or delay rules aimed at hastening electric car sales and reducing carbon emissions. The rules, known as the zero-emission vehicle (ZEV) mandate, compel carmakers to progressively sell more electric cars annually or face substantial penalties.

Amidst this, Volkswagen, Ford, and Tesla took a contrary stance, advocating for stricter regulations. The submissions to a government consultation, disclosed by Tom Riley of the Fast Charge newsletter, revealed carmakers' reservations regarding the ZEV mandate. Though heavily redacted at carmakers' requests, the submissions highlighted concerns within the industry about their ability to swiftly transition to electric vehicles.

Toyota expressed worry over challenging targets until 2027, fearing potential financial and brand damage. JLR, despite having multiple UK factories, doubted their capacity to meet the targets, deeming them unattainable. Similarly, Stellantis and Nissan voiced support for various delays.

In response, the government introduced flexibility, allowing carmakers to compensate for missed targets in one year by selling more electric cars in subsequent years. Manufacturers producing under 2,500 cars yearly received an exemption until 2030. Aston Martin Lagonda and McLaren expressed doubts about meeting the targets and hinted at potential legal actions.

However, Ford and Tesla advocated for stricter rules, supporting increased government-mandated sales of electric vehicles. The divergent stances underscore the industry's mixed sentiments toward rapid electric vehicle adoption and their concerns about meeting stringent regulatory targets set by the government.

Overcharged?: Petrol cars could cost ￡700 more annually than electric cars

The Energy and Climate Intelligence Unit (ECIU) recently released an analysis highlighting significant cost disparities between petrol and Electric Vehicles (EVs) in the UK automotive market. Their findings for the top-selling cars of 2023 underline a financial advantage favouring EVs over their petrol counterparts.

According to the report, drivers of the top 10 selling petrol cars of 2023 could incur approximately ￡700 more in annual running costs compared to those driving the equivalent EV models. Conversely, owners of the top 10 selling EVs, including popular models like the Tesla Model Y, are estimated to save nearly ￡1,300 annually in running expenses compared to petrol car owners.

Forecasts suggest that around 300,000 EVs will have been sold in the UK by the end of 2023. Over their lifespan, these EVs are projected to accumulate a collective savings of ￡5.6 billion for their owners compared to their petrol counterparts. Meanwhile, the petrol cars sold in the same year are expected to cost their owners an additional ￡7.6 billion compared to EV alternatives.

Choosing a petrol car over an electric one in 2024 might have a ￡10,000 higher running cost over the vehicle's lifetime

The timing coincides with the initiation of the Government's Zero Emission Vehicle (ZEV) mandate policy, set to commence on January 1st. The policy aims to drive the transition towards electric vehicles.

Notably, choosing a petrol car over an electric one in 2024 might lead to an estimated ￡10,000 higher running cost over the vehicle's lifetime. In contrast, the ZEV mandate foresees at least 22% of new cars sold in 2024 to be EVs, potentially saving buyers over ￡7.7 billion throughout the cars' lifetimes.

These analyses serve as compelling evidence for the financial benefits associated with transitioning to EVs. As the automotive landscape evolves in response to environmental policies, embracing electric vehicles appears not only environmentally responsible but also financially advantageous for consumers in the foreseeable future.

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