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UK's new-car market struggles amid unstable registrations while emphasizing an eco-friendly 2024 approach with zero-emission deliveries.

Cookies are utilized by Autovista24 to enhance user experience on their platform
Cookies are utilized by Autovista24 to enhance user experience on their platform

Cookies employed by Autovista24 for enhanced user experience

The UK's automotive industry is bracing for potential delays as the government launches a consultation on the Zero-Emission Vehicle (ZEV) mandate, set to run until 18 February. This move could cause further complications for carmakers as they develop their model plans for the years ahead.

The consultation, announced in December 2024, aims to examine the effectiveness of the ZEV mandate as part of the country's zero-emission transition. The consultation will consider which new cars could still be sold between 2030 and 2035, with options including establishing a CO emissions cap, a fleet-wide non-ZEV emissions cap, or a simple rule allowing only Plug-in Hybrid Electric Vehicles (PHEVs) that emit less than 115g/km of CO.

The UK's new-car market experienced a turbulent year in 2024, with a decline in registrations in the second half. However, despite this downturn, the full-year total ended with a 2.6% increase, with over 1.95 million units registered. The decline in the second half was partially offset by a strong first half, where registrations rose by 10.4%.

Petrol registrations suffered their biggest decline since June 2022 in December 2024, marking the third consecutive month of decline in the UK, the first time this has occurred since July 2022. On the other hand, Battery-electric vehicles (BEVs) achieved 43,656 registrations in December 2024, up by 56.8% year on year. PHEVs also saw a significant increase, with a 18.3% rise in registrations for the full year of 2024.

The ZEV mandate, which required 22% of a carmaker's fleet to be either all-electric or powered by hydrogen fuel cells in 2024, may have impacted the year's final numbers. BEVs ended the year with 381,970 registrations, the highest total of all European markets, overtaking Germany.

The UK government has confirmed that it will bring back the ban on sales of new petrol and diesel engines to 2030. The ban, which was first announced in 2017 with a target date of 2040, has seen several changes. It was brought forward to 2030 in 2020 and pushed back to 2035 in 2023.

The UK's automotive industry body, the SMMT, reported a 0.2% decrease in December registrations, with 140,786 units registered. Despite the decline, the SMMT highlighted that manufacturer discounting totalled over £4.5 billion (€5.4 billion) last year.

It's worth noting that, as of 2024, there are no specific public records or reports indicating that any companies in the UK have incurred special financial penalties under the ZEV regulation or how they have accounted for such penalties. The available search results do not provide detailed information on this matter.

In conclusion, the UK's auto industry is navigating through a period of change and uncertainty, with the government's ZEV consultation and the impending ban on new petrol and diesel engines looming. The industry's response to these changes will be crucial in shaping the future of the UK's new-car market.

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