The UK hit a notable milestone with the registration of its millionth electric vehicle (EV) last month, despite a notable decrease in sales, indicating a mixed picture for the nation's net zero ambitions. Sales to individual consumers dropped by 25% in January 2024, part of a wider 16% fall in all new car sales to private customers, as reported by the Society of Motor Manufacturers and Traders (SMMT).

Calls have intensified for government incentives, such as halving VAT on EVs, to drive consumer adoption. Over 20,000 battery electric vehicles were registered in January 2024, a 20% year-on-year increase, predominantly driven by fleet purchases, which saw a demand surge of over 40%. EVs comprised 14.7% of all new car sales in the UK for January, underscoring a growing but still insufficient market penetration to meet environmental targets.

The SMMT emphasises the need for supportive policies to expedite EV adoption, including electric heavy goods vehicles (HGVs), which are vital for reducing transport emissions. The higher upfront cost of EVs, including HGVs, remains a barrier, despite their lower running costs. Last year, the government's decision to delay the ban on new petrol and diesel car sales to 2035 drew mixed reactions, highlighting the challenges and opportunities in the transition to electric mobility.

Despite a decrease in private car registrations, overall new car market growth in January was buoyed by a significant increase in fleet sales, which now represent over 60% of all new car registrations. This reflects a shift towards more sustainable vehicle options in the UK's journey towards net zero emissions.