The UK new car market registered approximately 1.95 million passenger vehicles in 2024 (SMMT confirmed 1,952,778), according to SMMT data, a modest increase of around 2% on 2023 but still well below the 2.3 million average of the mid-2010s. The headline number, however, obscures a remarkable shift in what kind of car people are buying.
Electric Vehicles Break the 18% Barrier
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 translates to around 355,000 fully electric cars. The UK is now one of Europe's largest EV markets in absolute volume, second only to Germany.
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, company car drivers choosing EVs for tax benefits has been a huge structural tailwind.
Tesla's Position and the Competition
Tesla remained the UK's best-selling EV brand in 2024, with the Model Y holding the number one spot in the EV segment. But the gap narrowed considerably. 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 and BYD Seal have expanded the market's addressable price range downward.
Regional Variation
The South East and London continue to dominate UK registrations, collectively accounting for roughly a quarter of all new car sales. But EV adoption rates vary enormously by region. London, the South East, and Scotland consistently show higher EV share than the Midlands and North East. 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 new car sales fell below 10% market share in the UK in 2024 for the first time. That is a stunning reversal from 2016, when diesel commanded 47% 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.