Car manufacturers significantly reduce prices to meet sales targets, electric car sales in the UK surged in December.

In the UK, nearly one-third of the new cars registered last month were pure electric vehicles, as car manufacturers continue to reduce the prices of plug-in models to avoid fines. Preliminary data from the Society of Motor Manufacturers and Traders (SMMT) in the UK shows that in December of last year, sales of battery-powered vehicles increased by around 60% year-on-year, reaching nearly 44,000 units. Electric vehicles accounted for 31% of new car registrations, the highest monthly share in two years. Despite the surge in sales at the end of the year, car manufacturers failed to meet the annual target of 22% for electric vehicle sales set by the government. If not compliant, manufacturers could face fines of up to 15,000 (approximately $18,600) per vehicle, but they can avoid fines by using credit trading systems and exceeding requirements in the following years. The UK government is currently reviewing these regulations, which may increase flexibility to help manufacturers meet these requirements. Clean energy advocates criticize the efforts to lower quotas, believing that this will slow down the transition to electrification. SMMT Chief Executive Mike Hawes has stated that the sales target for electric vehicles this year will increase to 28%, which will be very difficult to achieve. He told reporters that the discounts stimulating current demand are not sustainable. The UK's electric vehicle sales situation is better than in the EU. In the EU, markets like Germany have seen a decrease in demand due to the withdrawal of incentives. But even in the UK, only one in ten private buyers chose electric vehicles by 2024, with commercial and fleet customers driving most of the demand.