According to the Society of Motor Manufacturers and Traders (SMMT) annual Sustainability Report, UK automakers have achieved a record-high production of electrified vehicles in 2022. Electrified cars, including hybrids, plug-in hybrids, and battery-electric vehicles (BEVs), accounted for 30.2% of all cars manufactured in the UK. The report also reveals that sales of electrified vehicles reached 34.5% in 2022, with BEVs alone representing 16.6% of car registrations and surpassing diesel as the second most popular powertrain after petrol. Plug-in hybrids made up 6.3% of the market share, resulting in a combined 22.9% of new registrations being plug-in cars, a record high. Hybrid electric vehicles (HEVs) also experienced growth, capturing an 11.6% share of the car market.
Despite the increase in electric vehicle (EV) production, the report highlights a lag in battery production, emphasizing the need for up to 90GWh of gigafactory capacity by 2030 to meet the UK’s EV manufacturing requirements. The SMMT’s industrial plan calls for various measures, including significant investment in affordable and renewable energy sources, to ensure a greener British economy and society.
Starting from January 2024, the Government’s Zero-Emission Vehicle (ZEV) mandate will be enforced, requiring manufacturers to meet increasing targets each year for zero-emission cars and vans as a proportion of their overall new vehicle registrations. The proposed target for 2024 is 22% for cars and 10% for vans, aiming for 100% zero-emission vehicles by 2035.
While the SMMT predicts that the market as a whole is on track to meet the 2024 target, it emphasizes that individual brands will need to meet the specific proportion of zero-emission vehicles, which may require the utilization of regulatory flexibilities or expensive trading and compliance payments.