The UK has overtaken Germany as Europe’s largest new all-electric (BEV) car market after record sales in 2024, driven by the country’s zero-emission vehicle mandate.

Data obtained by Kallanish on Monday shows the UK registered 381,970 BEVs last year – a 21.4% annual increase. In December alone, carmakers sold 43,656 units, corresponding to 31% of all new car registrations in the month.

According to the Federal Motor Transport Authority (KBA), Germany registered 380,609 new BEVs last year. Following the end of subsidies, sales dropped 27.4% y-o-y to a 13.5% market share. In France, BEV sales came to 291,143 units, down 2.47%, according to figures from trade body PFA.

Beyond the traditional end-of-year sales push, carmakers operating in the UK boosted efforts to ensure compliance with the required 22% rate demanded under the ZEV mandate. The average BEV penetration closed the year at 19.6%, at the cost of £4.5 billion ($5.6 billion) in purchase discounts, the SMMT says.

With CO2 reductions from lower diesel and petrol car sales – which together fell by 18%   – and increased uptake in lower emission alternatives such as hybrids and plug-in hybrids, the UK is believed to have met its first ZEV target, according to the Energy and Climate Intelligence Unit (ECIU). It estimates carmakers got as much as 3% in credits, helping hit compliance.

The SMMT forecasts the average new car CO2 has fallen by 6.2% in 2024 to 102.1 g/km in 2024.

Newly created association Electric Vehicles UK (EVUK) and other industry players say the record UK BEV sales are not a surprise and show that the UK ZEV mandate is working and should be maintained. “EVUK expects these record numbers to continue though 2025,” comments its ceo Dan Caesar.

“In hitting the government’s EV sales targets in their first year, the car industry has proven its ability to make the transition to building the electric vehicles of the future,” comments Colin Walker, head of transport at the ECIU. “Suggestions that the car industry was struggling, and that the ZEV mandate target was too onerous, have proven to be wrong, and were often based on a misunderstanding of how the policy actually works.”

However, the UK auto industry continues to lobby for a review of the mandate, warning current demand “will not deliver ambition without government support.” This year, the target is 28%, which would require an EV market uplift of just under 50%, the SMMT notes.

“A record year of EV registrations underscores vehicle manufacturers’ unswerving commitment to a decarbonised new car market, with more choice, better range and increased affordability than ever before,” argues SMMT chief executive Mike Hawes. “We need rapid results from the regulatory review and urgent substantive support for consumers – else automotive investments will be at risk and the jobs, economic growth and net zero ambitions we all share in jeopardy.”

The SMMT claims private consumer demand has contracted to levels last seen in the pandemic, with just one in 10 private buyers going electric in 2024. Yet, some say the apparent demand drop from private buyers reflects a fundamental shift in car finance, and registrations are unrecorded.

“EVUK sees that private buyers are buying new EVs but the registration figures are blended with fleet sales, which distorts the data,” adds Caesar.

“Too many PCPs [personal contract purchase], contract hire, finance and Motability purchases are recorded as fleet sales when they’re being driven by private buyers. We need to change the way these EV registrations are recorded, and fast,” warns Quentin Wilson, founder of FairCharge and EVUK advisory board member.

The UK also registered 167,178 plug-in hybrids and 261,398 hybrids, representing annual increases of 18.3% and 9.6%, respectively. Together, electrified vehicles accounted for 41.6% of all new car sales in the country last year.