According to industry figures, one in four cars sold in the UK last month was electric, but new registrations were driven by a steep discount.
According to the Society of Motor Manufacturers and Traders (SMMT), sales of electric cars rose for the 11th straight month in November as automakers raced to meet tougher targets.
The SMMT said manufacturers had “massively” discounted electric vehicles (EVs) worth around £4bn.
However, companies will miss official sales targets for EVs this year and are likely to have to pay heavily to comply with the rules.
SMMT chief executive Mike Hawes said manufacturers were investing in electric vehicles at “unprecedented levels” and were “spending billions on compelling offerings”.
But he added: “Such incentives are unsustainable – the industry alone cannot meet the UK’s global ambitions.”
Registrations of new electric cars bucked the general downward trend for other vehicles.
While the bulk of demand for new cars came from fleet sales to businesses, the sector still saw a decline in overall sales. Sales to private buyers also declined.
Sales of new petrol cars fell by more than 17%, sales of diesel cars fell by more than 10%, while hybrids and plug-in hybrids fell by more than 3% and 1% respectively.
The government has promised to meet with automakers to discuss EV targets. He has said. Targets “shall not be undermined” But it will talk about “flexibility”.
The manufacturers have said. They will not be able to meet the current targets.in a state where EV sales account for 22% of cars sold in 2024, without further customer incentives. The number is currently 18.7 percent, and they think it could reach 19 percent by the end of the year.
However, this still leaves them open to paying other manufacturers who have built up credit to sell EVs.
While many of these companies are either Chinese or make cars in China – American firm Tesla, for example – other carmakers may also have credit.
Manufacturers have long argued that it doesn’t make sense to subsidize Chinese firms by buying credits.
Earlier this month, both Ford And Stellanteswhich owns Vauxhall, announced job cuts, both of which they blamed in part on EV targets.
But both firms have previously expressed doubts about their future in the UK due to other factors.
Ford closed its Bridgend factory in 2020, getting rid of 1,644 jobs, citing Covid as one of the reasons. Vauxhall’s former owner PSA Group suggested in 2019 that Brexit threatened its Luton factory.
In general, UK-based companies are moving towards electric. JLR’s Jaguar is drawing a lot of attention for its recent rebrand as an electric-only automaker..