2024: A retrospective look at shifts in the new car market

In 2024, the UK’s new-car market experienced notable shifts, particularly with the rise of battery-electric vehicles (BEVs). Here’s a quick look back at how things unfolded throughout the year. 

The beginning of 2024 started strong, with new car registrations showing consistent growth. By May 2024, the market had seen 22 consecutive months of growth, with overall registrations up by 1.7%. However, this positive trend faced challenges in the latter half of the year, particularly in October and November, when sales dipped by 6% and 1.9%, respectively. 

Emergence of Battery-Electric Vehicles (BEVs) as strong performers 

BEVs emerged as the standout performers in 2024. Despite fluctuations in overall car sales, BEV registrations consistently increased. For example:  

• September saw a remarkable 24.4% increase in BEV sales compared to the previous year. 
• In November, BEVs recorded a staggering 58.4% growth year-on-year, making up 25.1% of that month’s total sales. 

Throughout the year, BEVs accounted for approximately 18.7% of all new car sales, showing a clear upward trend despite some months of decline in overall market performance. 

Correlation with Zero-Emission Vehicle (ZEV) Strategies 

This surge in BEV sales aligns closely with car manufacturers' strategies to meet zero-emission vehicle (ZEV) mandates. Some of these strategies included: 

• Manufacturers actively limiting the sales of petrol and diesel vehicles, focusing instead on increasing their BEV offerings. 
• The UK government setting ambitious targets for ZEV sales, aiming for 22% market share by 2025. However, BEVs are still trailing behind these targets. 

The push for electric vehicles is not just about meeting regulations; it reflects a broader shift in consumer preferences towards more sustainable options. However, several barriers remain: 

• Price sensitivity: The upfront costs of BEVs can be higher than traditional vehicles, which deters some buyers although there has been evidence to show that with BEVs offering more affordable used prices, this could ease in the near future.  
• Infrastructure challenges: Limited charging infrastructure continues to be a concern for potential EV owners, especially in more rural areas. 
• Consumer awareness: Many consumers are still unfamiliar with the benefits and capabilities of electric vehicles. 

In retrospect, 2024 was a pivotal year for the UK’s new-car market, marked by significant growth in BEV sales amid broader economic challenges. The correlation between increasing BEV registrations and carmakers' ZEV strategies highlights a transformative period in the automotive industry as it moves towards greater sustainability.  

As dealerships and manufacturers adapt to these changes, the future looks promising for electric vehicles, provided that challenges like pricing and infrastructure can be addressed effectively.