7 February 2025

UK EV Market and Charging Infrastructure January 2025

EV Adoption Rates:

Latest UK new registrations at end of year 2024

The year ended with a strong surge in new EV registrations, predominantly down to OEM price reductions and the desire to meet the first year of the ZEV mandate
After initial weak sales in the first half of the year, the second half rallied, ending in 21% growth year on year, making up 19.6% of all car sales
The ZEV mandate is open to consultation – submission in February – enabling charge point operators, investors, and OEMs’ input on the details of the government’s final proposal, due no later than September.
The paper covers predominantly the speed of phasing out the manufacture of ICE vehicles and the requirements and alterations to fleet transition. A positive for the industry as there is a motion that the government is sensitive to the issues to hold or reduce the time levels of transition
New entrants to the market such as Chinese manufacturers are expected to bolster new sales
Price parity on new car purchases has now been reached, with over 20 new EV models from value to premium being launched in 2025

Forecast of new registrations

(excludes growing second-hand car sales and commercial vehicles)

ZEV mandate on new vehicle sales

The UK’s Zero Emission Vehicle (ZEV) mandate, starting in 2024, sets annual sales targets for the percentage of new car and van registrations that must be zero-emission vehicles. It is a key part of the government’s strategy to phase out petrol and diesel vehicles by 2030 and hybrids by 2035.

Key Points:

1. Annual ZEV Sales Targets:

- 2024: 22% of new car sales and 10% of van sales must be zero-emission.
- Targets increase annually, aiming for 80% cars and 70% vans by 2030.
- By 2035, all new vehicles must be zero-emission.

2. Manufacturer Obligations:

- Targets apply to manufacturers producing more than 2,500 vehicles annually.
- Failing to meet targets can purchase credits from overperforming manufacturers or pay penalties.

3. Enforcement:

- Non-compliance incurs fines, initially set at £15,000 per missing ZEV credit.

4. Purpose:

- Accelerate the transition to zero-emission transport.
- Support the UK’s 2050 net-zero goals by reducing transport-related carbon emissions.

This mandate is designed to provide clarity for the automotive industry and drive infrastructure and innovation for a sustainable transition.

Charger Requirement – Reaching ZEV mandate on charge points

The ZEV (Zero Emission Vehicle) Infrastructure Strategy, including mandates related to charge points, focuses on ensuring the UK’s charging network can support the growing adoption of electric vehicles (EVs). This complements the ZEV mandate on new vehicle sales by addressing infrastructure needs.

Key Points on Charge Point Mandates:

Public Charge Points:

- The UK government aims to have 300,000 public charge points by 2030, a significant increase from current numbers.
- New rapid charge points are mandated at motorway service areas, ensuring a fast-charging point every 20 miles along major roads.

Accessibility and Reliability Standards:

- From 2024, public charge points must meet new reliability and accessibility standards.
- All chargers must have 99% reliability targets and offer contactless payment for ease of use.

Pricing Transparency:

- Public charge point operators are required to display pricing clearly and ensure no hidden fees.

Local Charging Hubs:

- Funding is allocated for local EV charging hubs, particularly in rural and underserved areas, to improve equitable access.

Support for Business Fleets:

- Businesses transitioning to EVs are supported with grants for installing charge points and financial incentives for infrastructure upgrades.

Charger Requirement – speed of growth

2024 saw a record year of charge point installation, with over 19,000 new points 37% increase yoy
Ultra-rapid chargers (150kW+) have grown at a particularly high rate, with more than 3,100 installed in the year – meaning there are 84% more at the end of December 2024 than there were in December 2023
However, Ultra-rapid and rapid charge points still only represent 20% of the overall infrastructure
Charge point numbers by category (speed) will fluctuate as drivers demand higher charger speed and reduced wait time and charge point operators reduce low-powered charging.
Information excludes workplace or private charging hubs.