Stellantis, the owner of British car brand Vauxhall, has announced that it met UK electric vehicle (EV) sales targets in 2024.
The UK zero emission vehicle (ZEV) mandate sets a quota for the proportion of vehicles sold each year to be electric, increasing up until a 2035 total ban on new petrol and diesel engine vehicles.
Trade association the Society of Motor Manufacturers and Traders (SMMT) previously called 2024 a challenging year for the sector “as manufacturers strove to create demand for electric vehicles in a bid to meet new mandated sales targets”.
The Stellantis announcement comes after the manufacturer revealed earlier this year that it would close one of its two UK sites, a decision made “in the context of the UK’s ZEV mandate”. The closure will see capital instead invested into the £50 million investment that will see the company establish an all-electric, sustainable vehicle hub at its Ellesmere Port site in Cheshire.
Media reports at the time estimated the Luton site closure would see 1,100 jobs lost. It came at a point when some car manufacturers were criticising the ZEV mandate, with the SMMT calling for government intervention.
SMMT stated that while the automotive sector “remains committed to delivering a decarbonised road transport sector”, the original assumptions on which the ZEV mandate was founded have not yet been borne out.
However, SMMT figures released since then show that in 2024 the UK new car market recorded its second successive year of growth and EVs took a record annual volume and market share of 19.6%.
Car manufacturers meet ZEV mandate
BMW, Mercedes and Hyundai all exceeded their targets for EV sales, but Ford, which called the rules of the ZEV mandate “unworkable”, fell short.
Although the market share for new EVs is technically below the mandated 22%, the ZEV mandate has flexibility that allows car makers to earn credits towards the target from the sale of large numbers of low-emission petrol and diesel cars, including hybrids.
As such, analysis of the SMMT figures by the Energy and Climate Intelligence Unit (ECIU), states that a further 3% credit was earned by the sale of low-CO2 emissions petrol and diesel vehicles, although this is something the government will have to confirm later in the year, meaning the 22% target has indeed been met.
Commenting on Stellantis’ announcement that it has hit the EV sales targets, Colin Walker, head of transport at the ECIU, said: “In hitting their EV sales targets in the first year, Stellantis has shown that it is able to adapt and compete as the world moves away from the internal combustion engine.
“By encouraging greater competition between manufacturers as they seek to hit their targets, the mandate is driving prices down. This is turn is driving sales up, as more and more British drivers are able to afford making the transition to cleaner and cheaper electric driving. And since the new EVs sold today will become the second-hand EVs of tomorrow, the mandate will expand the pool of used electric cars that will help millions more families make the shift.”
