The UK new car market registered 1,952,778 passenger cars in 2024, according to SMMT, a modest increase of 2.6% on 2023 but still well below the 2016 peak. The headline number, however, obscures a remarkable shift in what kind of car people are buying.
Electric Vehicles Reach a Record 19.6%
Battery electric vehicles accounted for 19.6% of all new UK car registrations in 2024, a new record and up sharply from 16.5% in 2023. In absolute terms that is 381,970 fully electric cars, which puts the UK alongside Germany as one of Europe's two largest EV markets by volume.
The Zero Emission Vehicle (ZEV) mandate has been central to this acceleration. Automakers face minimum EV sales quotas with fines for non-compliance, which has incentivised manufacturers to offer competitive pricing and leasing deals on EVs that were previously impossible. Fleet buyers have been the primary driver of growth: BEVs were 25.4% of fleet registrations in 2024, while private buyers of new cars fell 8.7%. Company car drivers choosing EVs for tax benefits has been a huge structural tailwind.
Tesla's Position and the Competition
The Tesla Model Y was the UK's best-selling electric car in 2024 and the fifth best-selling car overall, with 32,862 registrations. But competition widened. Volkswagen's ID.3 and ID.4, BMW's iX and i4, and the Hyundai Ioniq 5 and 6 have all taken significant market share. Importantly, more affordable options like the MG4 have expanded the market's addressable price range downward.
Regional Variation
London and the South East are the largest regions for UK new car registrations, though company headquarters addresses distort the regional picture. EV adoption rates also vary by region, with London and the South East generally ahead. This likely reflects a combination of income levels, commuting patterns, and the density of home charging capability (more houses with driveways).
The Diesel Collapse
Diesel took just 6.3% of new UK car registrations in 2024. That is a stunning reversal from 2016, when diesel commanded close to half of the UK market. The combination of the Dieselgate scandal, clean air zones in major cities, and punitive Vehicle Excise Duty for higher-emission vehicles has made the calculus against diesel almost overwhelming for private buyers.
Compare the UK's fuel type evolution against Ireland and India in AutoNergy's Electric Cars section, the Fuel Type Evolution stacked chart shows how dramatically each market has shifted.
Source: SMMT, 6 January 2025.