The UK's road to net-zero emissions is facing a major obstacle: despite record-breaking electric vehicle sales, the country risks missing its targets. In June, 30% of new cars registered were battery electric vehicles (BEVs), with 213,166 new cars sold – an 11.4% year-on-year increase, driven largely by electrified models.
Yet, despite this progress, industry experts warn that the current rate of adoption is insufficient to meet government mandates. So far this year, BEVs account for just 25% of registrations, well short of the target 33% Zero Emission Vehicle (ZEV) mandate for 2026. To hit this mark, electric cars would need to make up over 40% of new registrations for the rest of the year – a significant leap from current levels.
Manufacturers have been spending billions on discounts and incentives to boost sales, with estimated costs topping £12 billion. However, these efforts have also squeezed profit margins and potentially undermined the long-term value of EVs. SMMT chief executive Mike Hawes acknowledged the strong June performance but stressed that record levels are not enough to meet government targets.
The biggest hurdle to faster adoption is the perceived inadequacy of charging infrastructure. Analysis by ALA Insurance suggests Britain will only install around 171,000 public chargepoints by 2030 – a whopping 130,000 short of the government's target of 300,000, despite £1.6 billion in committed funding.
Industry insiders point to concerns over government policy, including the scrapping of the plug-in car grant and the introduction of vehicle excise duty on EVs, which they say have created uncertainty. The SMMT is calling for reform of the ZEV mandate, arguing that current compliance costs could make Britain a less attractive market for automotive investment, particularly as global manufacturers reassess their electrification strategies due to softened demand in international markets.